Background and acquisition of Simbionix
Long history within simulation for training of surgeons
Simbionix, founded in 1998 and with operations based primarily in
Customers within the area of robotic surgery – where surgical robotics manufacturers license the Simbionix's software for simulation – include Intuitive and Medtronic. Intuitive is today the world’s leading provider of surgical robots, with both Simbionix and Surgical Science supplying the embedded simulation software. Simbionix’s revenue model comprises both a license fee per sold simulation software package as well as an annual subscription fee on the installed base. The subscription fee accounts for the largest portion of revenues. Similarly, Medtronic – which submitted its Hugo robotic system for CE-mark approval during Q1 2021 – is supplied simulation software by both Simbionix and Surgical Science. Simbionix has a number of additional niche robotic surgery customers of which one was recently contracted.
In 2019, Simbionix reported sales of
Broadened product offering and strengthened position within robotic surgery
Simbionix complements and strengthens Surgical Science’s position in both the Educational Products and Industry/OEM business areas. Simbionix has a broader portfolio of simulators within Educational Products than Surgical Science, including areas such as endovascular procedures, urology, orthopedics, and ultrasound. Further, Simbionix collaborates with several key medical associations within its different product areas. Simbionix also has a simulator for robotic surgery that is marketed to university hospitals.
“This acquisition should be viewed as a merger of two leading players to accelerate the ability to deliver the next generation simulation solutions for patient safety and value to our customers. We have a great respect for Simbionix’s know-how and look forward to this important step in the consolidation of our growing niche market”, says Gisli Hennermark, CEO, Surgical Science.
“Simbionix has been part of 3D Systems since 2014 and has demonstrated growth and success during this time”, said Dr.
“We are impressed by Surgical Science's ability to execute on a clear strategy and look forward to joining the team and playing a large part in its future. With Simbionix's leadership position in the medical simulation field, I see great opportunity in delivering excellent value to both medical technology companies as well as educational customers with Surgical Science”, says
The new group
The new group will have a very strong position as the leading company within simulation for robotic surgery, both in terms of technology and market share. Surgical Science’s software will be embedded on all known robotic surgery platforms that have sourced soft tissue simulation. Further, there are strong growth opportunities for use of the simulation technology within other areas of healthcare, as the sector is digitalized. The group will, post-acquisition, comprise approximately 210 employees of which approximately 75 software developers. Simbionix will be integrated into Surgical Science to form a shared organization.
For the combined income statements, concerning the financial years of 2019 and 2020, as well as the first quarter of 2020 and 2021, please see the Appendix, which is an integrated part of this press release.
Terms of the transaction and financing
The seller of Simbionix is
As an integrated part of the acquisition, a number of key individuals at Simbionix will acquire shares from Surgical Science’s two largest shareholders –
The consideration for Simbionix constitutes a cash and debt-free value of
The acquisition is subject to the Company’s board of directors resolving on the directed new share issue and subsequent authorization at an Extraordinary General Meeting of Surgical Science. Additional information regarding the directed share issue will be announced shortly after the publishing of this press release. The acquisition of Simbionix is expected to be completed in the end of August provided that all conditions are met. Simbionix will be consolidated into Surgical Science upon closing of the acquisition.
Pro forma the new group had for the financial year 2020 (combined, unaudited) sales of approximately
Surgical Science’s current financial targets of achieving sales of
Surgical Science has appointed
Advisers
Surgical Science has appointed
This press release, in its entirety, is available through the attachment or via:
https://surgicalscience.com/aktien/pressmeddelanden/
This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.
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