Kiwi court gives preliminary approval for Lunit's purchase of Volpara

The corporate logos of Lunit and Volpara Health are seen in this image provided by Lunit. [YONHAP]

Lunit, a Korean medical AI startup, said Wednesday it has secured preliminary approval from a New Zealand high court for the acquisition of an Oceania-based breast cancer solution firm, Volpara Health.

With the high court's approval, Volpara Health will hold a general shareholders' meeting on April 12 to vote on Lunit's plan to take over the company, according to the Korean company.

Last year, Lunit signed a deal to acquire Volpara for US$193.1 million in a bid to further advance its AI solutions and expand its foothold in the United States, where 97 percent of the New Zealand firm's business comes from.

Lunit, founded in 2013, is known for its AI solutions that detect cancer and optimize cancer treatment, while Volpara specializes in AI-based breast cancer screening.

After the upcoming shareholders' meeting, the New Zealand court will review Lunit again to determine the validity and effectiveness of the decision to finalize the takeover process.

Lunit CEO Suh Beom-seok said the company expects to complete the acquisition of Volpara in May.

Yonhap