Another week, another SPAC. After reports back in May 2021 about potentially going public, Memic Innovative Surgery is being acquired by MedTech Acquisition Corporation, a a publicly-traded special purpose acquisition company (SPAC) focused on medical technology, including surgical robotics.
Tel Aviv, Israel-based Memic develops Hominis, the first FDA-approved, robotically-assisted surgical device for performing transvaginal hysterectomy. Hominis removes the uterus using minimally-invasive surgical instruments inserted through the vagina, as well as a video camera inserted laparoscopically through a small incision on the abdomen. The transvaginal approach requires fewer incisions on the abdomen compared to the traditional laparoscopic hysterectomy.
Hominis received de novo marketing authorization from the FDA in February 2021 for use in single site, natural orifice laparoscopic-assisted transvaginal benign surgical procedures, including benign hysterectomy. Memic said it plans to expand within women’s health, as well as into additional applications including general, colorectal, thoracic, transoral and transrectal surgeries.
“We are pleased to reach a merger agreement with MedTech, which represents a significant opportunity to advance the robot-assisted surgery market in ways that, until now, have been unattainable,” said Dvir Cohen, co-founder and CEO of Memic. “We believe the Hominis platform has the potential to transform the way surgeons perform robot-assisted procedures, beginning with our currently FDA-authorized indications that include transvaginal benign hysterectomy. Our partnership with the MedTech team, which provides decades of collective experience in surgical robotics, is an important step in bringing our advanced technology to medical facilities and patients across the United States and the world. We look forward to entering the public markets and working together with MedTech in the next phase of our company’s journey.”
The combined company will be valued at more than $1 billion at closing. Its estimated cash balance will consist of MedTech’s $250 million cash held in trust, $76 million from the private placement of ordinary shares with investors (PIPE), and $63 million from the current balance sheet of Memic.
The combined company is expected to hold approximately $360 million in cash. The PIPE is led by various investors, including Bridger Healthcare, Ltd., The Kraft Group, Monashee Investment Management LLC, Pura Vida Investments, Wellington Management, Ken Langone, Peregrine Ventures, HighSage Ventures, and management and board members of MedTech.
“Following a comprehensive review of investment opportunities, we were impressed with the highly accomplished management team at Memic and its disruptive, minimally invasive, cost-effective Hominis system, which positions the Company well for substantial growth and profitability,” said Chris Dewey, CEO of MedTech. “We believe that Memic’s innovative technology, coupled with our team’s expertise in successfully commercializing medical device companies, has the potential to create significant value for stockholders in the years ahead.”
Memic has applied for a CE Mark for the Hominis system in additional countries outside the United States with decisions and expanded commercialization pending.
SPACs have become a hot investment mechanism for other areas of the robotics industry, too. Berkshire Grey, Sarcos Robotics, Vicarious Surgical, and a slew of LiDAR companies, have or will be going public via SPACs.