ReWalk Robotics Ltd (Nasdaq: RWLK) ("ReWalk"), a leading provider of innovative technologies that enable mobility and wellness in rehabilitation and daily living for people with neurological conditions, today announced that it has entered into a definitive agreement to acquire AlterG, Inc ("AlterG"), a leading innovator and provider of anti-gravity systems for use in physical and neurological rehabilitation. This transaction will integrate AlterG's current and future product lines into ReWalk's existing neurorehabilitation portfolio. It is expected that this will allow ReWalk to significantly expand its customer-focused expertise and push future growth opportunities.
AlterG is a leading andieter in transformative technology that enables people to regain mobility, improve wellness and enhance physical performance. AlterG designs, manufactures and markets anti-gravity systems that use patented, NASA-inspired differential pressure technology to reduce the effects of gravity and enable people to move in new ways, with finely calibrated support and less pain. AlterG medical products can be found in more than 4,000 facilities worldwide. They have helped millions of people achieve their goals safely and consistently and achieve better mobility outcomes.
"This transaction is truly transformative for ReWalk and is a milestone in our long-term growth strategy that builds on both our existing product portfolio and synergistic acquisitions," said Larry Jasinski, Chief Executive Officer ("CEO") of ReWalk. "We believe this transaction will strengthen the combined market presence of both businesses and accelerate our path to profitability by creating sales and support efficiencies across all product lines. Through this transaction, we believe we will generate an excellent commercial infrastructure to support a variety of additional products across the continuum of care - both in the clinic and at home."
"AlterG and ReWalk share a common vision of combining synergistic, industry-leading products into a world-class portfolio that leverages our combined strengths," added Charles Remsberg, CEO of AlterG. "This transaction immediately creates the scale to fund the development of the next generation of our existing products and pursue additional innovative and commercial rehabilitation technologies that further strengthen our relationships with our customers as a key resource for innovative solutions in neurological and physical rehabilitation."
Following the transaction, Mr. Remsberg will assume the role of Chief Sales Officer on ReWalk's leadership team.
ReWalk will pay a purchase price of approximately $19 million in cash at closing of the transaction, which is expected to occur on August 11, 2023. Closing of the transaction is subject to the satisfaction of customary closing conditions by the parties. Additional cash consideration may be paid based on a percentage of AlterG's annual revenue growth over the next two years. With the acquisition of AlterG, ReWalk aims to strengthen its long-term financial position and path to profitability. AlterG generated $20 million in revenue with positive operating income in fiscal 2022. Piper Sandler acted as exclusive financial advisor to the buy-side for ReWalk. Goodwin Procter LLP acted as legal counsel to ReWalk. Wilson Sonsini Goodrich & Rosati P.C. acted as legal counsel to AlterG.
Larry Jasinski, chief executive officer, and Michael Lawless, chief financial officer, will host a webcast and virtual presentation for investors on Aug. 9 at 8:30 a.m. EDT to discuss the potential impact of the acquisition. AlterG CEO Charles Remsberg will also participate in the conference call.
Webcast details
ReWalk management will host a conference call and virtual presentation to discuss this transaction:
- Date: Wednesday 9 August 2023
- Time: 8:30 EDT
- Phone:
- US: 1-877-550-1707
- International: 1-848-488-9020
- Access code: Please name the "ReWalk / AlterG Acquisition Call."
- Webcast (to view the presentation): https://viavid.webcasts.com/starthere.jsp?ei=1626641&tp_key=e4b6bd3298
The archived webcast will be available via the "Investors" section of the ReWalk website at. https://ir.rewalk.com be available.
About ReWalk Robotics Ltd.
ReWalk Robotics Ltd. is a medical device company that designs, develops and markets innovative technologies that enable mobility and well-being in rehabilitation and daily living for people with neurological conditions. ReWalk's mission is to fundamentally improve the quality of life for these individuals through the creation and development of market-leading technologies. ReWalk was founded in 2001 and has offices in the United States, Israel and Germany. For more information about ReWalk systems, visit. rewalk.com.
ReWalk® and ReStore® are trademarks of ReWalk Robotics Ltd. registered in the United States and other jurisdictions outside the United States.
About AlterG, Inc.
Founded in 2005, AlterG® uses unique gravity-defying technology, originally inspired by NASA, to redefine physical rehabilitation and training. AlterG's anti-gravity systems reduce physical deficits and improve mobility, enhancing orthopedic rehabilitation, neurological and chronic disease management, and athletic performance.
Alter G® is a trademark of AlterG, Inc. registered in the United States and other jurisdictions outside the United States.
Forward-looking statements
In addition to historical information, this press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements may include projections of ReWalk's future performance and other statements that are not historical facts and in some cases are identified by words such as "anticipate," "assume," "believe," "continue," "may," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "should," "would," "seek" and similar terms or phrases. The forward-looking statements contained in this press release are based on management's current expectations, which are subject to certain uncertainties, risks and changes in circumstances that are difficult to predict, many of which are beyond ReWalk's control, including, among others, risks and uncertainties relating to: the ability of the parties to consummate the AlterG Acquisition and the transactions contemplated by the Merger Agreement in a timely manner, or at all, including the ability of the parties to satisfy the closing conditions set forth in the Merger Agreement between AlterG and ReWalk and the other parties; the ability of ReWalk to realize the anticipated benefits of the proposed AlterG Acquisition, including the possibility that the anticipated benefits of the Acquisition may not be realized within the expected time period or at all; potential delays in consummating the acquisition; the occurrence of events, changes or other circumstances or conditions that could result in the termination of the merger agreement; the impact of the announcement of the transaction on ReWalk's or AlterG's ability to retain customers and key employees and maintain relationships with suppliers, distributors and other key business relationships; and potential litigation in connection with the proposed acquisition.
Other important factors that could cause ReWalk's actual results to differ materially from those indicated by the forward-looking statements are discussed more fully in ReWalk's periodic filings with the Securities and Exchange Commission ("SEC"), including the risk factors described under the caption "Risk Factors" in ReWalk's Annual Report on Form 10-K and 10-K/A for the year ended December 31, 2022 filed with the SEC and in other documents subsequently filed with or furnished to the SEC. Any forward-looking statement in this press release speaks only as of the date of this document. Factors or events that could cause ReWalk's actual results to differ from the statements contained herein may arise from time to time, and it is not possible for ReWalk to predict all such factors. Except as required by law, ReWalk undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.
