Firefly Neuroscience (NASDAQ:AIFF) has announced its acquisition of closely held Evoke Neuroscience, a medical device company developing and commercializing technologies to aid in the comprehensive assessment of brain health.
According to Firefly, the transaction—building on its recent acceptance into the NVIDIA Connect program—marks another important step toward its goal of developing a proprietary foundation model of the human brain. The acquisition expands Firefly’s access to a multifaceted database, intellectual property portfolio, and increased commercial presence.
Following the acquisition, Firefly’s assets and operations now include:
- The largest known proprietary database of >180,000 standardized EEG/ERP assessment records
- 27 granted patents
- More than 60 current commercial users
These additions represent more than a two-fold increase in propriety brain scan data, a three-fold expansion of its patent portfolio, and a ten-fold increase in commercial footprint.
Purchase terms include:
- $6 million, to be paid 50% in cash and 50% in Firefly’s common stock priced at $3.50 per share.
- Eligibility for Evoke’s investors to receive a $500,000 earn-out upon Evoke’s acquired business achieving at least $3 million in annualized revenues within the next three years.
In a statement, David Hagedorn Ph.D., BCN, CEO and CSO of Evoke, commented, “Over the past 16 years, we have generated approximately $30 million in total revenues while also amassing the largest known collection of EEG/ERP electrophysiology data via our proprietary hardware and software developed to aid in the diagnosis of brain disorders and disease.”
Dr. Hagedorn added, “Given the obvious technological, clinical and commercial synergies between Evoke and Firefly, we believe this transaction represents a natural and important evolutionary step for both companies as we work together to establish a strong and growing business for all of our shareholders.”
Greg Lipschitz, CEO of Firefly, remarked, “These are exciting times as Firefly enters into a period of anticipated rapid growth and potentially game-changing innovation. “As our already unparalleled BNA database continues to grow with each new clinical study and/or clinical assessment in which our respective technologies are used, and armed with vital access to NVIDIA’s advanced software development resources, industry-leading frameworks and software development kits, we believe this acquisition of Evoke represents a key step toward Firefly fulfilling its goal of building the world’s first EEG/ERP-based foundation model of the human brain.”
