Firefly Neuroscience, an artificial intelligence (AI) company developing solutions to improve brain health outcomes for neurological and mental disorders, has acquired Evoke Neuroscience, a company specializing in technologies to aid in brain health assessment.

Firefly said the transaction is another step toward its proprietary foundation model of the human brain using its U.S. Food and Drug Administration (FDA)-cleared Brain Network Analytics (BNA) technology.

Due to the acquisition, the company now touts a proprietary database of over 180,000 standardized EEG/ERP assessment records. It also gained 27 granted patents and more than 60 current commercial users.

The deal was valued at $6 million, which Firefly said is to be paid half in cash and half in common stock priced at $3.50 a share.

“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,” said David Hagedorn Ph.D., BCN, Evoke’s CEO and CSO. “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.”

In October 2024, Firefly struck a distribution deal with Zeto for its FDA-cleared EEG headset devices.

“These are exciting times as Firefly enters into a period of anticipated rapid growth and potentially game-changing innovation,” added Greg Lipschitz, CEO of Firefly. “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.”