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Merge Healthcare (MRGE) to Bolster Portfolio through Merger with Opthalmic Imaging Systems (OISI)

|Includes: Merge Healthcare Incorporated. (MRGE)

Merge Healthcare, a leading provider of healthcare enterprise imaging and interoperability solutions, and Ophthalmic Imaging Systems (NYSE:OIS), a leading provider of digital imaging and informatics solutions for ophthalmology and other medical specialties, have inked a merger agreement under which Merge Healthcare will acquire OIS for approximately $30 million.

The deal will fatten Merge Healthcare’s portfolio with the addition of ophthalmic imaging and informatics. Merge Healthcare’s current line-up consists of imaging solutions for radiology, cradiology, cardiology and orthopaedics; a suite of products for clinical trials; software for financial and pre-surgical management.

“Merge Healthcare is a leader in virtually every image-intensive healthcare specialty, and with OIS we will add the important specialty of ophthalmology,” Jeff Surges, CEO of Merge Healthcare stated in the press release. “Demand for ophthalmic imaging solutions is increasing due to factors such as an aging population, improved treatment results based on early disease recognition and increased incidence of visual impairment, as well as the growing need for portable diagnostic equipment.”

Surges also noted OIS’s established position as a leader in ophthalmic imaging and informatics, and said the company’s solution suite and client base complement Merge Healthcare’s enterprise imaging capabilities. OIS expressed similar sentiment toward Merge Healthcare’s foothold in the industry.

“Merge Healthcare has extensive technical expertise and industry knowledge, and a solid infrastructure to support the continued growth of our ophthalmic imaging and informatics businesses,” Gil Allon, CEO of OIS stated. “We believe that joining forces with this leader is in the best interest of our company, our shareholders and our customers, and the all-stock nature of this transaction allows OIS shareholders to benefit from Merge Healthcare’s future market success.”

OIS shareholders will receive 0.1693 share of Merge Healthcare common stock for each share of OIS common stock, equaling $1 per OIS share based on five-day volume-weighted average price of Merge Healthcare common stock as of the close of trading on June 3, 2011.

The merger is expected to close in the third quarter of 2011.

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