TransEnterix Acquires ALF-X for $99.8 Million
Research Triangle Park, North Carolina-based TransEnterix, Inc. announced today that it has acquired the surgical robotics division of SOFAR S.p.A., an Italian health care company. According to the announcement, the deal is a cash and stock transaction with a total consideration of $99.8 million.
According to its website, SOFAR manufactures medicines, nutraceuticals, and medical devices, specializing in therapeutic areas such as gastroenterology, gynecology, urology, and dermatology. SOFAR’s website notes that the company was founded in 1968 and currently has approximately 350 employees. According to its website, SOFAR invested heavily over the last twelve years in developing TELELAP ALF-X, an advanced robotic system for minimally invasive laparoscopic surgery., and that the TELELAP ALF-X system was granted CE certification in 2012.
According to TELELAP ALF-X promotional materials, the system has a surgical cockpit that allows open view of the operation theater. Tool control is realized through laparoscopic-like input devices. The system also includes 3-D stereo vision with polarized glasses and incorporates a full eye-tracking system. SOFAR recently announced that the TELELAP ALF-X system is being used for minimally-invasive gynecological procedures.
According to its website, TransEnterix is focused on the development and commercialization of its SugiBot System, a robotically-enhanced laparoscopic surgical platform that allows the surgeon to be patient-side within the sterile field. According to TransEnterix President and CEO, Todd Pope:
We believe this combination accelerates our commercialization timeline and revenue ramp as we can immediately begin selling the ALF-X in many markets globally.
In its press release, TransEnterix emphasized the advantages of combining the SurgiBot and ALF-X systems. According to TransEnterix, this acquisition will allow TransEnterix to accelerate the migration of traditional laparoscopy to robotically-assisted laparoscopy by eliminating cost barriers to adoption. TransEnterix stated that a transition to robotically-assisted laparoscopy could potentially be quite positive for TransEnterix given that laparoscopic procedures represent over 10 times the number of existing robotic surgery procedures.
SafeStitch Medical to Merge with TransEnterix
On August 14, SafeStitch Medical, Inc. announced it has entered into an agreement to merge with TransEnterix, Inc. According to the press release, SafeStitch is a publicly traded medical device company based in Miami, and its mission is to develop disposable medical devices to advance minimally invasive surgery for hernia repair and treatment of obesity and other gastroesophageal disorders. The press release notes that SafeStitch has received FDA approval to market the AMIDTM Hernia Fixation Device for inguinal and ventral hernia repairs.
The press release states that TransEnterix is “pioneering the use of flexible instruments and robotics to improve how minimally invasive surgery is performed.” According to its website, TransEnterix has obtained FDA and CE Mark approval for the SPIDER® Surgical System, which uses flexible articulating instruments to create triangulation via single site access. TransEnterix is based in Research Triangle Park, North Carolina.
The press release notes that according to the terms of the merger agreement, SafeStitch Medical will be the surviving entity, its shareholders will own approximately 35% of the combined company while TransEnterix holders will own approximately 65%, and the company will be headquartered in Research Triangle. According to Yahoo! Finance, the current market capitalization of SafeStitch is approximately $49.36 million.
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