TransEnterix Inc., (NYSE:MKT:TRXC), which sells minimally invasive robotic surgery systems, has acquired the surgical robotics division of Italian health care company SOFAR, in a cash and stock deal worth $99.8 million.
SOFAR has developed the TELELAP ALF-X® advanced robotic system for minimally invasive surgery. Transenterix says the acquisition is expected to have a positive financial impact and over time can help increase the use of robotic surgery systems.
The combination of SurgiBot and ALF-X will allow TransEnterix to address a larger market opportunity with compelling patient, surgeon and hospital value,” Todd M. Pope, President and CEO of TransEnterix, said in a statement,“We believe this combination accelerates our commercialization timeline and revenue ramp as we can immediately begin selling the ALF-X in many markets globally.”
TransEnterix says the accelerates its progress toward its fundamental strategies.
The company lists those as accelerating the migration of traditional laparoscopic procedures to robotically assised procedures. Laparoscopic procedures represent over 10 times the number of existing robotic surgery procedures. New robotic systems that leverage laparoscopic experience and techniques should facilitate the continued growth of robotically enhanced laparoscopy.
Address the trade-offs required of surgeons when using currently available robots: Both the SurgiBot and ALF-X systems are designed to address trade-offs that currently-available robotic systems require of surgeons.
Eliminate cost barriers to adoption with compelling pricing models: Both robotic systems are designed to present a compelling economic value to hospitals. Whether through reduced capital acquisition cost or reduced per-procedure costs, each system will lower the economic barriers for hospitals to engage in robotic surge.
At the closing of the Acquisition Transaction, SOFAR received $25 million in cash and 15,543,413 shares of TransEnterix common stock with a value of $43.7 million, based on the closing price of $2.81 as of September 18, 2015.
The agreement also provides for up to €27.5 million ($31.1 million) in remaining cash consideration to be paid in three additional tranches based on the achievement of negotiated milestones.
On the web: www.transenterix.com
