US-based TransEnterix has purchased Israel-based medical technology company MST Medical Surgery Technologies (MST) in a cash and stock transaction.
The deal includes MST’s technology assets, IP portfolio and the R&D team.
MST developed a software-based image analytics platform powered by advanced visualisation, scene recognition, artificial intelligence, machine learning and data analytics.
The acquisition will add advanced surgical image analytics technology capabilities to TransEnterix’s Senhance digital laparoscopy platform.
MST CEO Motti Frimer said: “The Senhance is a fantastic product with incredible potential, and we have a shared vision with TransEnterix of providing digital laparoscopy to better equip surgeons with innovative technologies that enhance their abilities, providing better quality, more consistent outcomes.”
The deal will be completed in two phases. In the first tranche, TransEnterix will pay $5.8m in cash and 3,150,000 shares. In the second tranche, MST will receive $6.6m in cash or stock within a year of closing.
TransEnterix president and CEO Todd Pope said: “Adding innovative, novel technological capabilities to Senhance is a critical part of our long-term strategy as we work towards digitizing the interface between the surgeon and the patient.
“The addition of the MST technology to our Senhance platform will increase the effectiveness of surgeons, making procedures quicker and less error-prone, leading to better outcomes for the patient.”
In addition, the deal will provide TransEnterix access to MST’s R&D centre in Israel along with a team of experienced engineers.
As a part of the agreement, TransEnterix will transfer Israeli-based R&D team of MST Medical Surgery Technologies to TransEnterix Israel, a newly formed subsidiary.