Sarcos Technology and Robotics Corporation Closes Acquisition of RE2, Inc.
Sarcos Technology and Robotics Corporation (NASDAQ: STRC, STRCW) has completed its acquisition of RE2, Inc. for $100 million, comprising $30 million in cash and 14 million shares of Sarcos stock, resulting in approximately 5.7% dilution for existing shareholders. The acquisition aims to enhance Sarcos' robotics capabilities across various industries, including aviation and medical sectors, while gaining RE2's existing contracts and products. This merger is expected to expand Sarcos' addressable market and improve worker safety and productivity.
- Acquisition of RE2 expected to enhance Sarcos' addressable market in aviation, construction, medical, and subsea sectors.
- Existing contracts with the U.S. government for robotic systems will contribute to future revenues.
- Combined engineering team nearly doubles, enhancing product development capabilities.
- Expected earlier product revenue and availability from RE2's Sapien products.
- Addition of advanced technology in computer vision and autonomy from RE2 will support Sarcos' AI initiatives.
- Dilution of approximately 5.7% for existing Sarcos shareholders due to stock issuance.
- Integration challenges may arise post-acquisition, affecting operational efficiency.
- Potential impact of the COVID-19 pandemic on future business performance and product launches.
Total consideration for the transaction was
“We are delighted to officially welcome the entire RE2 team to the Sarcos family,” said
Sarcos expects to benefit from future revenue associated with RE2’s existing contracts, including contracts with the
“The productivity imperative, along with the COVID-19 pandemic, has accelerated the need for, and adoption of, robotic technologies beyond the factory floor,” said
Following the closure of the transaction, the Sarcos product line now includes the Guardian® XO® full-body, battery-powered industrial exoskeleton, Guardian® XT™ teleoperated dexterous mobile robotic avatar system, and the SapienTM line of arms - including models with capabilities ranging from precision arms for surgical applications to rugged outdoor arms for construction tasks and the Sapien Sea Class system that can operate in shallow and deep water.
Summary of Transaction Benefits:
- Expected to add additional target markets in aviation, construction, medical, and subsea to Sarcos’ total addressable market
- Sapien products are expected to bring earlier revenue and commercial product availability for the combined company
- Provides a significantly broader product set with a wide range of use cases and price points for customers
- Nearly doubles Sarcos’ engineering team
-
Adds a second Sarcos location in
Pittsburgh, PA , to assist in attracting talented new hires - RE2’s Detect™ outdoor computer vision solution and Intellect™ autonomy software expertise will be added to Sarcos’ Cybernetic Training for Autonomous Robots (CYTAR™) artificial intelligence (AI) and machine learning program
For more information on Sarcos and its award-winning product portfolio, please visit www.sarcos.com.
About the Transaction
About
Forward-Looking Statements; RE2 Financial Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Sarcos’ ability to successfully integrate RE2 into its operations; the products and markets of each company; the expected benefits of the acquisition of RE2 and Sarcos’ ability to realize those benefits; Sarcos’ performance following the acquisition of RE2; Sarcos’ plans to expand its product availability; Sarcos’ ability to sell its products or obtain robot-as-a-service subscriptions; competition from existing or future businesses and technologies; and the expected size of and potential for the acquisition to expand Sarcos’ addressable market. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or “continue” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are based on Sarcos’ and RE2’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Sarcos is not under any obligation and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Readers should carefully review the statements set forth in the reports which Sarcos has filed or will file from time to time with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20220425005254/en/
Investor Contact:
Head of Investor Relations
(801) 419-0438
pr@sarcos.com
ir@sarcos.com
Source: Sarcos Technology
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