Restoration Robotics, maker of the ARTAS and ARTAS ix robotic hair restoration systems, and Venus Concept, a privately-held global aesthetic technology company, have entered into a definitive merger agreement to combine the two companies in an all-stock transaction. The merger, which is subject to customary closing conditions, is expected to close in the third quarter of 2019.
Restoration Robotics will own approximately 15 percent of the combined company, while Venus Concept will own the remaining 85 percent. EW Healthcare Partners has committed to lead a $21 million equity investment in the combined company’s common stock contingent on the closing of the merger transaction.
Additional investors committed to participating in the proposed equity financing include HealthQuest Capital, Madryn Asset Management, Longitude Capital Management, Fred Moll and Aperture Venture Partners.
“The proposed transaction will create a combined company with the resources, product portfolio and expertise that will benefit our customers, employees and our shareholders,” said Ryan Rhodes, CEO of Restoration Robotics. “We are excited to partner with the Venus Concept team as we see the combination as an opportunity to become the leading player in minimally invasive hair restoration. With more than 600,000 procedures and an estimated $4 billion spent annually in the global hair restoration market, the growth opportunity for the combined entity is extremely compelling.”
“We believe the combination with Restoration Robotics will enable us to offer an end-to-end portfolio of minimally invasive solutions, unique from competitors in the hair restoration market today,” said Domenic Serafino, Chairman and CEO of Venus Concept. “We look forward to leveraging our large direct sales force to accelerate the adoption of ARTAS in the marketplace following the successful second half of 2018 launch of the next generation ARTAS iX Robotic Hair Restoration System with its integrated harvest, site mapping and implantation capabilities.
“Hair restoration will become an increasingly important part of our global medical aesthetics portfolio, which also includes technologies that address hair removal, skin rejuvenation, wrinkle reduction, cellulite and body contouring.”
Less than two years ago, Restoration Robotics went public and raised $25 million during its IPO. Restoration Robotics was co-founded in 2002 by Moll, the surgical robotics pioneer. Moll also co-founded Intuitive Surgical (1995) and founded Hansen Medical (2002) and Auris Health (2007).
After raising $220 million in November 2018 for its Monarch robotic interventional platform, Auris Health was acquired by Johnson & Johnson subsidiary Ethicon in mid-February for $3.4 billion. Also in February, Intuitive Surgical raised $2 billion via stock repurchases.
Filed Under: The Robot Report, Robotics • robotic grippers • end effectors