Lunit, a Korean medical AI company, disclosed plans to acquire all shares of Volpara Health Technologies, a New Zealand-based firm specializing in breast imaging AI solutions.

To fund this acquisition, Lunit will issue approximately 171.5 billion won ($127.1 million) in convertible bonds, contributing to the total acquisition cost estimated at 260 billion won.

The bonds, to be matured in five years, are priced at 54,872 won per share for conversion, with the conversion option available one year after issuance.

Lunit aims to strengthen its position in the global medical AI market through the acquisition of Volpara. The company anticipates significant synergies from combining its technologies—Lunit INSIGHT MMG for 2D mammography and Lunit INSIGHT DBT for 3D tomosynthesis—with Volpara's established U.S. distribution network.

This merger is expected to enhance Lunit’s market presence in North America and reduce costs associated with new sales channel developments.

“Due to strong investor interest and demand, the convertible bond issue was larger than originally planned,” Lunit CEO Brandon Suh said. “The remaining proceeds will be funded by cash on hand and will be strategically utilized for post-acquisition business expansion and synergies, as the proceeds are not intended for working capital, debt repayment, but for M&A.”