ReWalk Robotics to acquire firm with gravity-defying technology for $19M
Photo | Grant Welker
ReWalk's Marlborough headquarters
Marlborough medical device firm ReWalk Robotics has agreed to acquire AlterG, a California company specializing in technology for use in physical and neurological rehabilitation.
AlterG uses NASA-derived technology to produce anti-gravity systems to help people recover lost mobility. Its treadmills use differential air pressure to take weight off of users’ legs. They are equipped with technology to monitor and analyze the users’ gait to improve recovery from injuries. The company generated revenue of $20 million in fiscal year 2022 with positive operating profit.
The $19-million cash acquisition is expected to close on Friday, according to a Tuesday press release from ReWalk. Additional cash earnouts may be paid based upon a percentage of AlterG’s year-over-year future revenue growth over the next two years.
“This transaction is truly transformative for ReWalk and is a milestone in our long-term strategy for growth from both our existing portfolio of products and from synergistic acquisitions,” ReWalk CEO Larry Jasinski, said in the press release. “We believe this transaction will leverage our combined market presence from both businesses and, by creating sales and support efficiencies across all product lines, accelerate our path to profitability. Through this transaction, we believe we will create a formidable commercial infrastructure to support multiple additional products across the continuum of care from the clinic to the home.”
ReWalk is a publicly-traded company based in Marlborough, Berlin, Germany, and Yokneam Illit, Israel. It specializes in improving mobility for individuals with neurological conditions. Its cornerstone product is an exoskeleton that helps people walk and climb stairs.
“AlterG and ReWalk share a common vision of combining synergistic industry-leading products into a world-class portfolio which leverages our collective strengths,” AlterG CEO Charles Remsberg said in the press release “This transaction instantly creates the scale to fund next-generation enhancements to our existing products and to pursue other innovative and commercial rehabilitation technologies that further strengthen our relationships with our customers as a key resource for innovative solutions in neurological and physical rehabilitation.”
Following the transaction, Remsberg will join the executive team at ReWalk in the role of chief sales officer.
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