Thanks @JonesingPanda. You hit the nail on the head- this was...

Thanks @JonesingPanda. You hit the nail on the head- this was something I was gonna directly address in another post (and to append my post last Friday on the regulatory approvals Imbio has achieved).

Agree, that US25m is a fair price (and later potential 3 buckets of earn outs of up to US20m) and even cheap on a long term basis. You can consider revenue and breakdown cash flow benefits as only one aspect.

I like to also consider the other strategic and cost saving aspects of this. AI is generally a topical term that many companies are getting into, and health care AI is no different. In fact, medical institutions are increasing (although still in early stage from an industry wide standpoint) AI for radiology, and it's expected this will grow substantially over the next decade and on. That's why the large healthcare organisations are partnering with AI companies as they want a piece of this growth avenue.

4DX has been smart strategically because they are now getting in on the action and early on so to not miss out on this growth - as well to propel their reputation high up in the lung and heart imaging space as a leader in structure and function imaging and AI products.

With the relatively fair price paid upfront, we got:
- 4 FDA approved products
- 4 Europe CE Mark certified products
- 4 Health Canada approved products
- 1 FDA investigation use only products
- 2 investigation use only products pending for All Regions
- 1 CE Mark pending
AND as we learned today, 3 potential new FDA approvals by Dec 2015 including another heart product (assume they might look at Europe and Canada too for these 3 products).

Can we replicate or better this (with competing products) by spending the same amount of resources on R&D? And then further resources to achieve more than 12 regulatory approvals? And then consider the resources to establish the commercialisation and sales/distribution channels and agreements Imbio has achieved? And how much time would this all take - with no guarantee of success?

It does not require a calculation to know that the resources and spend would far far outweigh what we've agreed to pay, securing all this IP, approvals, Imbio's reputation, agreements etc All UPFRONT. In fact, I feel when you look at it from this point of view, it was probably CHEAP.

I haven't even considered further strategic and financial benefits....