Why Imaging Vendor Mach7 is Merging with Australian Firm
Mach7, a Vermont-based vendor of enterprise image management software and operating in 10 nations, will merge with Australian-based 3D Medical Limited for a unique reason.
The two vendors have a working relationship as 3D Medical is a reseller of Mach7’s technology. While termed a merger under Australian rules, 3D Medical is actually the buyer, although Mach7, which will remain in Vermont, will be the controlling entity going forward, says Christi Bowers, senior vice president at Mach7.
That’s because Mach7 wants to become a publicly traded company but conducting an initial public offering of stock in the United States is a long and expensive process. Trading on the Australia Stock Exchange, however, is a far more streamlined and cheaper process, taking two or three months, according to Bowers.
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The exchange Down Under might not have the prestige of the New York Stock Exchange but Bowers notes, “The Australian Exchange is a very reputable and lucrative opportunity.”
Consequently, becoming public quicker brings in funding quicker so Mach7, with more than 40 clients, can grow faster. “Access to new capital will enable us to surpass business and product roadmap goals in a shorter time frame and to better serve our customers,” says Mach7 CEO Albert Liong.
3D Medical also will raise new funds of up to $10 million in Australian dollars to enhance Mach7’s customer support, sales and marketing activities.