TransEnterix Inc, an American medical device company that developed a digital platform to improve minimally invasive surgery, announced this week that it has acquired Israeli medical technology Medical Surgery Technologies Ltd (MST), in a cash and stock transaction. The deal is valued at approximately $32 million.
According to the agreement, MST will receive $5.8 million in cash and 3,150,000 shares of TransEnterix common stock, which closed at $6.47 on Friday. In the second phase, MST will receive $6.6 million in cash or stock within a year of closing
MST, which focuses on surgical and image analytics for medical robotics and computer-assisted surgery, will become an Israeli subsidiary of TransEnterix and will serve as the company’s R&D center in Israel. The center “will allow the company to tap into talent from one of the world’s top technology hubs,” TransEnterix said in a statement.
TransEnterix described MST as “a leader in the field of surgical technology, having developed a software-based image analytics platform powered by advanced visualization, scene recognition, artificial intelligence, machine learning and data analytics.”
TransEnterix developed the Senhance Surgical Robotic System, which digitizes laparoscopic minimally invasive surgery and “allows for robotic precision, haptic feedback, surgeon camera control via eye sensing and improved ergonomics while offering responsible economics,” according to the company.
MST CEO Motti Frimer said the Israeli firm was “excited to be partnering with TransEnterix, one of the leaders in surgical robotics who is pioneering the industry with their Senhance platform. 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 was founded in 2005 by Moti Sholev and Ziv Tamir. It is based in the northern Israeli city of Yokneam.