It's a new market and we are the leaders in real estate," Justin Dearborn, Merge's president at the time, said during a May 8, 2012 conference call with analysts, according to a transcript. A long-time executive with Mr. Ferro, he is now the company's CEO. The Chicago-based company even promised to place 100 free, Internet-connected devices throughout the city, drawing praise from Mayor Rahm Emanuel. But they were never installed. Mr. Ferro was "passionate" about health kiosks, Mr. Dearborn said in an interview yesterday. "He likes the consumer side of health care." Mr. Ferro apparently liked the kiosks so much he bought 500 of them for $2.8 million in 2012, one of 11 transactions between Merge and Mr. Ferro. Mr. Dearborn was named CEO on Aug. 9 after the company reported disastrous second-quarter financial results. Mr. Ferro resigned as chairman on Aug. 26, saying he was considering taking the company private. Now, Merge is dropping Mr. Ferro's pet project.