Ekso Bionics announces the acquisition of the Human Motion and Control business including the Indego® product line from Parker Hannifin Corporation.
Ekso Bionics (Nasdaq: EKSO) (the "Company"), an industry-leading provider of exoskeleton technologies for medical and industrial applications, today announced the acquisition of the Human Motion and Control ("HMC") business from Parker Hannifin Corporation ("Parker"), a global leader in motion and control technologies. The acquisition includes the Indego line of lower limb exoskeletons and the planned development of robotic orthotics and prosthetics.
This complementary acquisition expands Ekso's product offering in home and community care, increases Ekso's product pipeline, and complements strategic relationships with key business and research partners, including Vanderbilt University. The collaboration with Vanderbilt is expected to pave the way for future research and product development.
"The strategic acquisition of Parker's uniquely capable and customizable Indego exoskeletons expands our product offering and market opportunity in the home," said Steven Sherman, chairman and executive chair of Ekso Bionics. "With the acquisition of HMC, we aim to expand our global footprint and strengthen our market position in lower extremity robotic products through our combined innovations and leading-edge technologies."
Parker's devices are FDA-approved lower limb exoskeletons that provide task-specific, above-ground gait training to patients with lower extremity weakness or paralysis. Products include Indego Personal, a lightweight exoskeleton for safe use in most home and community settings, and Indego Therapy, an adjustable exoskeleton for patients with spinal cord injuries and stroke that complements Ekso's product offering in ambulatory settings.
"Indego is one of the most advanced and comprehensive home electrical and smart device offerings, which is a strategic fit for Ekso," said Scott Davis, chief executive officer of Ekso Bionics. "We expect this acquisition to directly contribute to our revenue results, improve operational efficiencies and establish Ekso as a leader in lower extremity robotics. We plan to continue to explore additional growth opportunities in the future that align with our strategy.
The merged companies have made significant investments in world-class technology development and distribution. The devices are deployed in over 400 facilities and used by thousands of patients worldwide. With the acquisition of HMC, Ekso has gained a high-caliber academic partner that can drive new product development, which is underscored by the ten-year product commercialization strategy with Vanderbilt University.
Ekso Bionics acquired all of Parker's HMC assets in the U.S. and Europe for a total purchase price of $10 million. Ekso paid $5 million at closing and delivered $5 million of zero coupon subordinated unsecured notes payable quarterly over four years beginning December 31, 2023.
"We are pleased to have entered into 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 at Parker. "This is a great technology with an outstanding team that has developed a highly differentiated product offering to improve gait performance and outcomes for people with mobility impairments. The acquisition will allow Ekso to leverage its robust commercial and clinical teams to help this important technology reach more patients in need across the continuum of care."
Change at the top of Ekso Bionics
In connection with the acquisition, Mr. Sherman resigned as Chief Executive Officer of the Company and the Board of Directors of Ekso Bionics appointed Mr. Davis as Chief Executive Officer, each effective immediately. Mr. Davis had served as President and Chief Operating Officer of the Company since January 2022. Mr. Sherman will continue to serve as Chairman of the Board of Directors and will serve as Executive Chair of the Company.
"I am proud of our recent accomplishments in positioning Ekso for long-term growth, culminating in today's important acquisition," said Mr. Sherman. "I congratulate Scott on his well-deserved promotion. On behalf of the Board, we have the utmost confidence that he will maintain our growth momentum and maximize shareholder value."
About Ekso Bionics®
Ekso Bionics® is a leading developer of exoskeleton solutions that enhance human potential by supporting or improving strength, endurance and mobility in medical and industrial applications. Founded in 2005, the company builds on its industry-leading expertise to develop some of the most advanced and innovative wearable robots available. Ekso Bionics is the only known exoskeleton company to offer technologies that help people with paralysis get up and walk, to enhancing human capabilities at worksites around the world. 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.
With specialized exoskeletons for therapy and personal use, Indego offers solutions that address the full spectrum of care - from acute rehabilitation to mobility at home and in the community. Indego Therapy is FDA-approved for use in patients with spinal cord injuries at injury levels C7 through L5 and for individuals with hemiplegia (with motor function of 4/5 in at least one upper extremity) due to a cerebrovascular accident (CVA) to perform ambulatory functions in rehabilitation facilities. Indego Personal is FDA-approved to enable individuals with spinal cord injuries at levels T3 through L5 to perform outpatient functions in their homes and communities. Indego Therapy and Indego Personal are also available in Europe after receiving CE Mark in November 2015. To learn more about Indego Therapy or Indego Personal, visit www.indego.com.
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements may include, but are not limited to, statements regarding management's plans, objectives and expectations regarding the Company's industry, growth and strategy, the anticipated 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 intended to be, and may not be realized as, a prediction or guarantee of actual results, performance, events or circumstances because they are based on 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 are beyond the Company's control. Actual results and the timing of certain events and circumstances could differ materially from those described in the forward-looking statements as a result of these risks and uncertainties. Factors that could cause or contribute to the inaccuracy of forward-looking statements or cause actual results to differ materially from those anticipated or desired include, among others, the Company's inability to obtain adequate financing for the Company's funding and growth and the need to develop or improve the Company's technology, the significant time and resources involved in developing the Company's products, the failure of the Company to achieve broad market acceptance of the Company's products, the failure of the Company's or partners' sales and marketing efforts to effectively commercialize the Company's products, and unfavorable results in future clinical trials of the Company's medical 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 products, lack of product diversification, existing or increased competition, disruptions in the Company's supply chain due to the COVID-19 virus outbreak 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 its 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 visit the Company's Twitter page at @EksoBionics. All forward-looking statements in this press release speak only as of the date of this press release. The Company undertakes no obligation to update these forward-looking statements, except as required by law.
In connection with today's acquisition, Scott Davis has been promoted to CEO of Ekso following the resignation of Steven Sherman. Scott has served as President and Chief Operating Officer of the Company since January 2022. Steven will continue to serve as Chairman of the Board and serve as Executive Chair of the Company.
"I am proud of our recent success in positioning Ekso for long-term growth, culminating in today's important acquisition," Sherman said. "I congratulate Scott on his well-deserved promotion. On behalf of the board, we have every confidence that he will maintain our growth momentum and maximize shareholder value."