Israeli medical software developer Voyant Health Ltd. has been acquired by Germany's Brainlab for more than $10 million. Voyant Health's orthopedic imaging systems are currently sold at 1,000 points of sale worldwide.
Brainlab has been a distributor for the TraumaCad since 2009, and recently began expanding its own healthcare management capabilities, prompting the acquisition of Voyant Health.
Voyant Health CEO Zeev Glozman told "Globes", "For our shareholders, this was a good opportunity to sell." The shareholders are mainly Glozman and his co-founder, chief medical officer Dr. Doron Norman. The company never received funding from venture capital funds or angel investors.
Gozman and Norman founded Voyant in 2003, after meeting in unpleasant circumstances. "I was his patient in the orthopedics ward. A nail was implanted to fix my broken hand, but it was too long, and I had to undergo repeat surgery," says Gozman, who was a software developer at the time. "I told him, 'You need to develop software to improve how orthopedics plan the insertion of such nails, and prevent incorrect placements."
Gozman and Norman obtained a grant of several tens of thousands of dollars from the Office of the Chief Scientist's Tnufa program to develop the software. They subsequently developed several other orthopedic imaging software products.
"We decided to fly to the US to sell the systems one by one. We were profitable virtually from the outset," says Gozman. "We've never raised capital at all, but expanded on basis of revenue."
Voyant Health's TraumaCad allows orthopedic surgeons to access patient images online and to plan and digitally template surgical procedures from anywhere. Another product, VoyantLink makes it easier for hospitals and care providers to obtain diagnostic images from their referral network, eliminating the need for manual transfers of CDs or middleware. The US Food and Drug Administration (FDA) approved TraumCad in 2004, and the company quickly integrated its systems with leading medical devices vendors. This enabled the product to reach leading US hospitals, the company's primary market, as well as in other countries.
Brainlab will integrate Voyant Health's TraumaCad and OrthoWeb, an orthopedic workflow system with Brainweb's orthopedic surgical navigation system and online medical network.
Brainlab will apparently keep the Israeli R&D center. Voyant Health has 40 employees, some at its headquarters in Tel Aviv and others in its Maryland office.
Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2011
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