DIH Technology to Combine with Aurora Technology as Part of SPAC Merger
DIH owns several brands that make robotic rehabilitation devices.
DHI Technologies makes medical robotic systems.
The companies announced that they have signed a non-binding Letter of Intent to combine the companies.
Robotics 24/7 Staff
· December 16, 2022
DIH Technology Ltd. plans to merge with Aurora Technology Acquisition Corp., or ATAK, as part of special acquisition company, or SPAC, purchase. DIH makes robotics and virtual reality products and services and is based in Norwell, Mass.
Aurora Technology, not to be confused with the self-driving company Aurora, is a publicly traded special purpose acquisition company based out of San Francisco.
ATAK said its securities are listed on NASDAQ, with $202M cash in trust raised through its IPO. As a blank check company, ATAK said it was formed with the purpose of entering into a merger with a high-growth technology company, which preferably is founded by Asian or Asian-American entrepreneurs who are building a global enterprise supported by forward-thinking visions and innovative frontier technologies.
As a developer of robotics for rehabilitation and virtual reality-based advanced movement platform for human performance, DIH owns brands such as HOCOMA and Motek, with more than 4,500 robots and advanced VR-based movement systems installed in 70 countries.
DIH's principal customers include advanced research centers, innovative rehabilitation hospitals, and top healthcare clinics.
Terms of the deal
Earlier this week, the companies signed a non-binding letter of intent to mark the potential business combination.
Under the terms of the LOI, Aurora and DIH would become a combined entity, with DIH's shareholders rolling 100% of their equity into the combined public company.
ATAK and DIH expect to announce additional details regarding the business combination when a definitive agreement is executed, which is expected before Jan. 31, 2023.
“We are very impressed by both the entrepreneurial spirit driving ATAK's management team as well as its diverse and well-respected board members and advisors, said Jason Chen, CEO and Chairman of DIH's board of directors. “We believe the combination with ATAK will facilitate our launch as a public company with strong corporate governance, expand our capital market expertise, and enhance our strategic investment capabilities, including M&A.”
“These all are critical to DIH's growth strategy as a transformative and innovative total solution provider and consolidator in the highly fragmented rehabilitation technology industry,” he added.
Zachary Wang, CEO and Chairman of ATAK's board of directors, said “DIH fits our acquisition target profile well as a multi-national smart technology provider in the human rehabilitation and performance industry. Founded by Asian-American entrepreneurs with over 20 years of experience managing global healthcare operations, the company has a strong tenured management team.
“We see DIH as an exciting opportunity for growth, with its proprietary technology, scalable business model, and experienced leadership team positioning it to expand its global market share and continue to drive innovations that lead the industry in benefiting patients,” he added. “We believe that the merger and access to public markets will enable the company to continue to scale its global platform and deliver on its growth potential.”
Stay up-to-date with news and resources you need to do your job.
Research industry trends, compare companies and get market intelligence every week with Robotics 24/7.
Subscribe to our robotics user email newsletter and we'll keep you informed and up-to-date.