Sarcos Technology and Robotics Corporation today announced that it has reached a definitive merger agreement to acquire RE2 Robotics., a developer of autonomous and teleoperated mobile robotic systems for use in the aviation, construction, defense, energy and medical industries.
The companies said the transactions brings together two leading commercial robotics teams focused on industrial robotic technologies that improve worker safety and productivity.
Purchase price of $100 million
Consideration for the transaction is $100 million, consisting of $30 million in cash, which Sarcos expects to fund with cash on hand, and $70 million of Sarcos common stock.
“We are delighted to welcome the RE2 team to Sarcos,” said Kiva Allgood, president and CEO of Sarcos. “This transaction brings an innovative company with a complementary but additive suite of products into the Sarcos family, allowing us to offer a much wider range of solutions to address our customers’ needs. It will also allow us to expand our offerings to new industries such as medical and subsea, deepen our team of robotics experts, and advance the development of AI and machine learning technologies for use in unstructured environments.”
Expanding product lines
Following the transaction, the shared product suite will enable the combined company to target a much broader spectrum of customer needs across the commercial and defense sectors, they said.
The initial product line will include the GuardianXO full-body, battery-powered industrial exoskeleton, the Guardian XT teleoperated dexterous mobile robotic avatar system, the Sapien line of arms which features several models with capabilities ranging from precision arms for surgical applications, rugged outdoor arms for construction tasks, and the Sapien Sea Class system that can operate in shallow and deep water to perform inspection and maintenance tasks across multiple industries. Sapien products are expected to provide earlier revenue and commercial release for the combined company.
Sarcos said RE2 has significant program wins in surgical robotics, aviation maintenance, and construction automation. It has also sold more than 650 robotic arm products capable of operating in unstructured environments into the market since 2010. The company said RE2’s proven track record serving government and commercial customers makes it an ideal addition to the team.
RE2 recently announced that its Maritime Mine Neutralization System it is developing in partnership with the U.S. Navy had reached a new underwater depth of 1 km (3.9 mi.)
RE2 staff to be retained
RE2 was founded by President and CEO Jorgen Pedersen in 2001 as a spin out of Carnegie Mellon University’s National Robotics Engineering Center. It has more than 100 employees in its offices along Pittsburgh’s Robotics Row.
Pedersen will become Sarcos’ Chief Operating Officer after the combination is complete, and all employees will be retained, according to Sarcos.
“The RE2 team is looking forward to joining Sarcos and accelerating the development and adoption of intelligent robotic systems,” said Pedersen. “Across the globe, robotic technologies are changing the way workers perform complex, often dangerous tasks, particularly during a time of widespread skilled labor shortages. By combining our organizations, Sarcos can now offer a variety of robotic solutions to a broader customer base.
In addition, the combined company expects to advance robotic autonomy in unstructured environments by leveraging RE2’s Detect outdoor computer vision solution and Intellect autonomy software along with the Sarcos Cybernetic Training for Autonomous Robots AI and machine learning program.
Transaction expected to close in second quarter
The transaction will close upon satisfaction of the closing conditions, which Sarcos expects to occur in the second quarter. Further comments regarding this acquisition will be made in conjunction with Sarcos’ earnings release and conference call on March 29, 2022.
RE2 generated revenues of approximately $15 million in 2021, and Sarcos does not expect the acquisition to have a material effect on its cash burn rate. Sarcos expects to benefit from revenue associated with RE2’s existing contracts, which includes contracts with the government to develop innovative robotic systems for underwater and industrial solutions and a developmental partnership with a leading, manufacturer and provider of mobile elevating work platforms and access equipment.
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