Edinburgh-based AI provider, Blackford Analysis, has been acquired by Bayer, a global life science company, in a bid to bring its medical AI imaging technology to a wider audience. 

Spun out from the University of Edinburgh in 2010, Blackford has a presence in the UK and the US focused on providing healthcare providers with tailored tools and services to unlock the value of medical imaging AI, driving efficiencies and improving patient outcomes. 

Blackford founder and CEO, Ben Panter, said: “Blackford exists to improve the lives of patients and populations by unlocking the adoption and benefits of medical imaging AI and we explored a number of funding options to expand the company to deliver this mission.”

“Bayer’s offer allows us freedom to continue to deliver that mission as an independent, arms-length company along with all the strength and support of an experienced life science partner.”

Following the acquisition, Blackford will continue to operate as an independent organisation on an arm’s-length basis to preserve its entrepreneurial culture. It will remain headquartered in Scotland, and no changes in management or staff are expected. 

The company will remain accountable to advance its technology, channel partnerships and clinical application portfolio while benefiting from the experience, infrastructure and reach of Bayer as a global pharmaceutical company. The acquisition is expected to close later this year, pending the satisfaction of customary closing conditions.

In 2020, Blackford and Bayer collaborated through a development and licence agreement that laid the foundation for Bayer’s recently launched medical imaging platform, Calantic™ Digital Solutions.

The overall global medical imaging AI sector is expected to continue growing dynamically, reaching $1.36 billion by 2026.[1] Innovation powered by AI is needed more than ever to help combat the increased demand for medical imaging to detect diseases and to guide optimised patient treatment pathways. 

“Adding Blackford and its AI technology to our radiology portfolio secures Bayer an excellent position in the fastest growing segment within the overall global radiology industry,” Stefan Oelrich, Member of the Board of Management, Bayer AG, and President of Bayer’s Pharmaceutical Division, said.

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Blackford has been supported by strategic investors in Scottish health-tech companies, including the world’s longest continually operating angel syndicate, Archangels, as well as the University of Edinburgh’s venture investment fund, Old College Capital, Scottish Enterprise, Thairm Bio, and Tricapital. Archangels has provided £6m of patient capital investment to support Blackford’s growth since 2012.

Kerry Sharp, Director, Entrepreneurship and Investment, Scottish Enterprise, said: “Blackford is a fantastic example of how Scotland’s patient and supportive ecosystem can help ambitious early-stage companies achieve success. This acquisition will provide increased opportunities for the company alongside Bayer and we are delighted to have supported Blackford for over 10 years through our co-investment model.”

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