RESEARCH TRIANGLE PARK, NC – Asensus Surgical, Inc. (NYSE American: ASXC), known for its digital solutions in the operating room, has been acquired by the KARL STORZ Group, a major player in endoscopy and medical imaging. The merger, which was completed after the approval of Asensus Surgical's shareholders, resulted in KARL STORZ Endoscopy-America, Inc. purchased all outstanding shares of Asensus Surgical for $0.35 per share in cash.
With this acquisition, Asensus Surgical becomes a subsidiary of KARL STORZ, and its common stock will no longer be traded on the NYSE American Exchange. Anthony Fernando, President and CEO of Asensus Surgical, expressed excitement about the merger, highlighting the potential for accelerated development and delivery of their robotic and digital surgical solutions. He expects that this collaboration will improve surgical precision and patient outcomes around the world.
KARL STORZ CEO, Karl-Christian Storz, echoed these sentiments, emphasizing the complementary nature of Asensus technology with their existing portfolio of surgical solutions. He also welcomed more than 200 Asensus employees, expressing confidence in their collective efforts to transform healthcare.
Asensus Surgical has been recognized for its pioneering intra-operative Augmented Intelligence technology and its innovative approach to digitizing laparoscopy. The company's first-generation Senhance robot has been introduced to the market, and its second-generation LUNA™ system, which is still in development and not yet approved or commercially available, is expected to improve the robot's precision and range of motion in surgery.
The merger is a strategic move for KARL STORZ, aimed at strengthening its market presence in the field of robotic and digital surgery. Financial advice for Asensus Surgical was provided by Jefferies LLC, with Ballard Spahr LLP acting as legal counsel. KARL STORZ advised UBS Investment Bank, Ropes & Gray LLP acting as legal counsel.
This news is based on a press release and shows the continuous consolidation and innovation within the medical technology industry, as companies seek to expand their capabilities and provide more integrated solutions to healthcare providers.
In other recent news, Asensus Surgical Inc. has experienced significant development. The company's shareholders voted to approve the merger with KARL STORZ Endoscopy-America, Inc. This decision will result in Asensus Surgical becoming a wholly owned subsidiary of KARL STORZ, a move expected to enhance its capabilities in the area of medical technology. .
Asensus Surgical's Q2 financial results showed an increase in revenue to $2.2 million from $1.1 million last year. However, the company also reported a net loss attributable to common shareholders of $25.7 million, and an adjusted loss of $18.1 million after excluding non-cash charges. As of June 30, 2024, the company's cash and cash equivalents stood at $7.8 million.
These are the latest developments surrounding Asensus Surgical Inc., including the approved merger and recent financial results.
InvestingPro Insights
The purchase of Asensus Surgical by the KARL STORZ Group comes at a time when the company has shown a remarkable return during the last three months, with a 42.35% increase in its share price. This performance reflects the strong confidence of investors leading to acquisitions, which may be due to the potential synergies identified between Asensus' technology and KARL STORZ's portfolio of surgical solutions.
However, InvestingPro's data paints a picture of a company that has faced financial challenges. Asensus Surgical reported revenue growth of 39.05% over the past twelve months from Q2 2024, which is a solid figure, but it's important to note that the company is operating at a negative gross profit margin of -30.45%. Additionally, the company's operating income margin was worse at -848.7%, indicating operational difficulties.
InvestingPro Tips suggests caution, as Asensus Surgical has weak earnings estimates and analysts do not expect the company to turn a profit this year. In addition, the company's short-term liabilities exceed its liquid assets, which may have been a factor in the decision to merge with a financially strong company like KARL STORZ.
For readers interested in delving deeper into Asensus Surgical's financial health and market performance, InvestingPro offers additional tips and insights. There are currently six other InvestingPro tips available, which provide a comprehensive analysis of the company's financials and market conditions.
As the merger takes place, the participants of Asensus Surgical and KARL STORZ will closely monitor how the integration of technologies and resources will affect the joint venture's finances and market presence in the field of digital and robotic surgery.
This article was created with the support of AI and reviewed by an editor. For more information see our T&C.
