Transenterix Inc., a developer of medical robotics meant to perform and enhance surgical procedures, announced Sunday a cash-and-stock deal to acquire the majority of an Israeli medical technology company for more than $32 million.
The Morrisville, North Carolina-based company will acquire all technology, intellectual property, and research and development team members owned by MST Medical Surgeries Technology Ltd.
Transenterix will make two payments for the acquisition. At the closing of the transaction, the company will give MST’s ownership approximately $5.8 million cash and 3.15 million shares of its common stock. The second phase, which will be required within a year of closing, will see Transenterix pay MST another $6.6 million in either cash or stock.
“The addition of the MST technology to our Senhance platform will increase the effectiveness of surgeons, making procedures quicker and less error-prone, leading to better outcomes for the patient,” Transenterix CEO Todd Pope said.
Transenterix’s Senhance Surgical System focuses on minimally invasive surgeries performed by its robotics through small incisions. It offers a multi-port robotic surgery system, which allows up to four arms to control robotic instruments and a camera.
Acquiring MST’s image analytics software will improve its Senhance platform by increasing control in the surgical environment and reducing surgical variability, the company said.
The acquisition also provides Transenterix immediate access to a research and development center in Israel. The company will form a new subsidiary, TransEnterix Israel Ltd., based in this center and comprised of the already-established MST team.
“The Senhance is a fantastic product with incredible potential, and we have a shared vision with TransEnterix of providing digital laparoscopy to better equip surgeons with innovative technologies that enhance their abilities, providing better quality, more consistent outcomes,” MST CEO Motti Frimer said in a statement
Transenterix announced Aug. 7 that for the fiscal 2018 second quarter, it sold four Senhance Systems — one in the U.S. and three abroad. During that quarter, it also received approval from the U.S. Food and Drug Administration for expanded uses of the Senhance Systems device.
The company expects to sell three Senhance systems in the third quarter.
Monday at midday, shares of Transenterix were trading at $6.76, a 4.48 percent jump from the day’s opening. That trading price is the highest the company’s stock has been valued at in over 17 years.
