ReWalk Defies Gravity with Latest Acquisition Bid
ReWalk Robotics has hit the M&A trail this week to build up its offerings. The exoskeleton specialist announced its intent to acquire AlterG, a provider of Anti-Gravity systems for use in physical and neurological rehabilitation, for about $19 million.
Additional cash earnouts may be paid based upon a percentage of AlterG’s year-over-year future revenue growth over the next two years. With this acquisition of AlterG, ReWalk seeks to strengthen its long-term financial position and path to profitability.
The combined company will have a trailing 12-month revenue of about $26 million.
“It brings us new technological capabilities in commercial skill and scale and opportunity for much greater presence with the clinics who are now key to expand access to exoskeletons,” Larry Jasinski, CEO of ReWalk said during a call discussing the deal.
The deal is expected to close on August 11th.
“Following the closing we will have significant resources from both organizations,” he said. “During the fall planning cycle, we will design and finalize the new commercial structure so that we will approach the market in 1Q24 as one unified team.”
Alter G was founded in 2005 and its technology was originally developed for NASA, to redefine physical rehabilitation and training. AlterG’s Anti-Gravity systems augment physical deficits and increase mobility to improve orthopedic rehabilitation, the management of neurological and chronic conditions, and athletic performance.
“AlterG and ReWalk share a common vision of combining synergistic industry-leading products into a world-class portfolio, which leverages our collective strengths,” Charles Remsberg, CEO of AlterG, said in a release. “This transaction instantly creates the scale to fund next-generation enhancements to our existing products and to pursue other 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, Remsberg will join the executive team at ReWalk in the role of Chief Sales Officer.
ReWalk has had some significant achievements in 2023. In June, the Centers for Medicare & Medicaid Services announced a proposal to include personal exoskeletons in the Medicare benefit category for braces. Once finalized, the Medicare benefit category for personal exoskeletons would be clear – i.e., the Medicare benefit category for “leg, arm, back, and neck braces” – and payment would be on a lump sum basis.
In a release dated June 30th, Jasinski said, “CMS has used this Proposed Rule to identify a path forward to provide this life-changing technology to beneficiaries with SCI. Proposing a clear Medicare benefit pathway for personal exoskeletons eliminates one of the largest barriers preventing Medicare beneficiaries from access to these innovative devices. The inclusion of a policy addressing personal exoskeletons in this Proposed Rule is a significant milestone for the spinal cord injury community.”
The company had another victory in May when it reported the first U.S. demonstration of its stairs-enabled exoskeleton at the Abilities Expo from May 5 to 7.