Ekso Bionics (Nasdaq: EKSO) (the “Company”), an industry leader in
exoskeleton technology for medical and industrial use, today
announced the acquisition of the Human Motion and Control (“HMC”)
Business Unit from Parker Hannifin Corporation (“Parker”), a global
leader in motion and control technologies. The acquisition includes
the Indego lower limb exoskeleton line of products as well as the
planned development of robotic assisted orthotic and prosthetic
devices.
This complementary acquisition expands Ekso’s
product offering across the continuum of care to home and community
use markets, grows Ekso’s product pipeline and adds strategic
relationships with key commercial and research partners, including
Vanderbilt University. The collaboration with Vanderbilt is
expected to provide a path for future research and product
development.
“The strategic acquisition of Parker’s
uniquely-powered and adjustable Indego exoskeletons significantly
builds our product offering and extends our market opportunity to
the home,” said Steven Sherman, Chairman and Executive Chair of
Ekso Bionics. “With the addition of HMC, we intend to grow our
global footprint and increase our market position in lower
extremity robotic products driven by our shared innovations and
leading-edge technologies.”
Parker’s devices are FDA-cleared lower-limb
powered exoskeletons that enable task-specific, overground gait
training to patients with weakness or paralysis in their lower
extremities. Products include Indego Personal, a light-weight
exoskeleton for safe use in most home and community environments,
and Indego Therapy, an adjustable exoskeleton for patients with
spinal cord injury and stroke complementing Ekso’s product offering
in outpatient facilities.
“Indego is one of the most advanced and broadest
range of powered and intelligent devices for home use, which
represents a strategic fit for Ekso,” said Scott Davis, Chief
Executive Officer of Ekso Bionics. “This acquisition is expected to
contribute immediately to our top-line results, improve operating
efficiencies and establish Ekso as a leader in lower extremity
robotics. Moving forward, we plan to continue exploring future
growth opportunities that align with our strategy.”
The combined companies have made significant
investments into developing world-class technology and distribution
with devices deployed in over 400 institutions used by thousands of
patients worldwide. Highlighted by a product commercialization
strategy with Vanderbilt University that spans a decade, the
acquisition of HMC brings Ekso an elite academic partner to help
power new product development.
Ekso Bionics acquired all of Parker’s HMC global
business assets in the U.S. and Europe for an aggregate purchase
price of $10 million. Ekso paid $5 million at closing and delivered
a $5 million subordinated, unsecured zero coupon note payable
quarterly over four years, commencing December 31, 2023.
“We are pleased to have finalized an agreement
with Ekso Bionics as a strategic buyer for our Human Motion and
Control business,” said Mark Czaja, Vice President - Chief
Technology and Innovation Officer of Parker. “This is a great
technology with an outstanding team that has built a highly
differentiated product offering to help improve gait performance
and outcomes for people living with mobility impairments. The
acquisition will allow Ekso to leverage their robust commercial and
clinical teams to ultimately enable this important technology to
reach more patients in need across the continuum of care.”
Ekso Bionics Leadership
Transition
In connection with the acquisition, Mr. Sherman
resigned as the Company’s Chief Executive Officer, and the Ekso
Bionics Board of Directors appointed Mr. Davis as Chief Executive
Officer, each effective immediately. Mr. Davis has served as the
Company’s President and Chief Operating Officer since January 2022.
Mr. Sherman will continue to serve as Chairman of the Board and
will begin serving as Executive Chair of the Company.
“I am proud of our recent accomplishments to
position Ekso for long-term growth, culminating with today’s
important acquisition,” said Mr. Sherman. “I offer my
congratulations to Scott on his well-deserved promotion. On behalf
of the Board, we have the utmost confidence that he will sustain
our growth momentum and maximize shareholder value.”
About Ekso
Bionics®
Ekso Bionics® is a leading developer of
exoskeleton solutions that amplify human potential by supporting or
enhancing strength, endurance and mobility across medical and
industrial applications. Founded in 2005, the Company continues to
build upon its industry-leading expertise to design some of the
most cutting-edge, innovative wearable robots available on the
market. Ekso Bionics is the only known exoskeleton company to offer
technologies that range from helping those with paralysis to stand
up and walk, to enhancing human capabilities on job sites across
the globe. The Company is headquartered in the San Francisco Bay
Area and is listed on the Nasdaq Capital Market under the symbol
“EKSO.” For more information, visit: www.eksobionics.com or follow
@EksoBionics on Twitter.
About Indego
With dedicated therapy and personal use
exoskeletons, Indego provides solutions that address the complete
continuum of care – from acute rehabilitation to home and community
ambulation. Indego Therapy is cleared by the FDA for use with
spinal cord injury patients with injury levels C7 to L5, and for
individuals with hemiplegia (with motor function of 4/5 in at least
one upper extremity) due to cerebrovascular accident (CVA) to
perform ambulatory functions in rehabilitation institutions. Indego
Personal is cleared by the FDA to enable individuals with spinal
cord injury at levels T3 to L5 to perform ambulatory functions in
their home and community. Indego Therapy and Indego Personal are
also commercially available in Europe, having received the CE Mark
in November 2015. To learn more about Indego Therapy or Indego
Personal, visit www.indego.com.
Forward-Looking Statements
Any statements contained in this press release
that do not describe historical facts may constitute
forward-looking statements. Forward-looking statements may include,
without limitation, statements regarding the plans, objectives and
expectations of management with respect to the Company’s industry,
growth and strategy, the expected benefits of this acquisition,
potential technological and operational improvements, the Company’s
growth prospects, and the assumptions underlying or relating to the
foregoing. Such forward-looking statements are not meant to predict
or guarantee actual results, performance, events or circumstances
and may not be realized because they are based upon the Company's
current projections, plans, objectives, beliefs, expectations,
estimates and assumptions and are subject to a number of risks and
uncertainties and other influences, many of which the Company has
no control over. Actual results and the timing of certain events
and circumstances may differ materially from those described by the
forward-looking statements as a result of these risks and
uncertainties. Factors that may influence or contribute to the
inaccuracy of the forward-looking statements or cause actual
results to differ materially from expected or desired results may
include, without limitation, the Company's inability to obtain
adequate financing to fund and grow the Company's operations and
necessary to develop or enhance the Company’s technology, the
significant length of time and resources associated with the
development of the Company's products, the Company's failure to
achieve broad market acceptance of the Company's products, the
failure of the Company’s sales and marketing efforts or of partners
to market the Company’s products effectively, adverse results in
future clinical studies of the Company's medical device products,
the failure of the Company to obtain or maintain patent protection
for the Company's technology, the failure of the Company to obtain
or maintain regulatory approval to market the Company's medical
devices, lack of product diversification, existing or increased
competition, disruptions in the Company’s supply chain due to the
outbreak of the COVID-19 virus and the emergence of new, more
infectious variants, the Company’s ability to successfully
integrate the acquired business and its personnel, and the
Company's failure to implement the Company's business plans or
strategies. These and other factors are identified and described in
more detail in the Company's filings with the SEC, including the
Company’s most recently filed Annual Report on Form 10-K. To learn
more about Ekso Bionics please visit the Company’s website at
www.eksobionics.com or refer to the Company’s Twitter page at
@EksoBionics. Any forward-looking statements made in this press
release speak only as of the date of this press release. The
Company does not undertake to update these forward-looking
statements, except as required by law.
Contacts: Investors:David
CareyFINN Partners212-867-1768investors@eksobionics.com
Media:Erich SandovalFINN
Partners917-497-2867Erich.Sandoval@finnpartners.com
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