Merge to acquire Interpra Medical Imaging

Merge Technologies has signed a letter of intent to acquire Interpra Medical Imaging, a Toronto, Ontario-based developer of Java-based clinical workflow and information management software. Merge plans to offer Interpra’s products directly to end users as well as through its OEM/VAR channels. Interpra president and chief medical officer Dr. Stephen Herman will stay on as Merge’s chief medical officer.

The stock-for-stock transaction is expected to be completed by the end of August, subject to the execution of a definitive agreement, completion of due diligence, regulatory approvals, and closing conditions. Interpra shareholders would receive 420,000 shares of Merge stock, along with an equal number of put options exercisable in five years for $4.50 each. Merge’s stock closed at $1.44 per share on July 27.

In other Merge news, the Milwaukee-based company posted a revenue increase of 47% during its second quarter (end-June). Revenues were $2.8 million, compared with $1.9 million for the same period in 1998. Merge recorded a net loss of $584,000, compared with a net loss of $683,000 last year. Merge’s results were below analysts’ expectations, however.