Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Volpara (ASX:VHT) unveils exciting acquisition, share price jumps

Volpara Health Technologies Ltd (ASX:VHT) is in the news today after announcing an exciting acquisition called CRA Health.

Volpara Health Technologies Ltd (ASX: VHT) is in the news today and the share price is up after announcing an exciting acquisition called CRA Health.

Volpara provides software that helps breast screening clinics regarding breast density, compression, dose and quality. It also offers practice management software.

CRA Health acquisition

Volpara is buying CRA Health, which the company called an industry leader in breast cancer risk assessment spun out of Massachusetts General Hospital.

The acquisition price is US$18 million, with a further US$4 million payable on meeting key performance and staff retention targets.

Volpara said that CRA is profitable and has positive operating cashflow, based on financial results to 31 December 2020. It has annual recurring revenue of US$4 million (NZ$6.2 million). CRA’s average revenue per user is US$1.70 and covers around 6% of US breast screenings. CRA has grown significantly over the past year.

CRA’s software is integrated with the major Electronic Health Record (EHR) and genetics companies. CRA receives patient information, including breast density, and returns the risk of breast cancer alongside appropriate recommendations, including whether additional imaging or genetics testing is advised.

After the acquisition, Volpara will have annual recurring revenue of around US$17.5 million (or NZ$26.9 million) and at least one product in use in over 30% of US breast screenings. The company said it will have around NZ$35 million of cash. It will increase the group ARPU to over US$1.40.

Management comments

Volpara CEO Dr Ralph Highnam said: “The acquisition of CRA is very significant for Volpara…CRA has a strong science background, just like Volpara, and provides us with world-class knowledge about risk and genetics. CRA is expected to benefit the Volpara brand and will accelerate us on our mission to save families from cancer by preventing advanced-stage breast cancer.”

Summary thoughts

This seems like a very smart bolt-on acquisition by Volpara. It grows Volpara’s ARR by a sizeable amount, it increases the ARPU, it grows the company’s market share and perhaps most importantly it gives the business more avenues for growth. Volpara could be one to watch.

I think Volpara is among a group of ASX growth shares worth following. There are others in my opinion, like Pushpay Holdings Ltd (ASX: PPH).

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content