Medical device company Memic Innovative Surgery has established a merger agreement with special purpose acquisition company MedTech Acquisition Corp. Memic is famous for producing Hominis, a pioneering, FDA-cleared surgical device that uses robotic assistance to perform transvaginal hysterectomies.
Hominis is able to remove the uterus with minimally-invasive instruments, and uses a video feed scoped in through an abdominal incision for reference. The reduction in incision count compared to traditional hysterectomies has helped the device gain traction in the industry.
Memic’s deal with MedTech comes on the heels of the former’s $96-million Series D funding in April. When the acquisition is finalized, the joint company will have an estimated equity value of over $1 billion. Cash balances include $63 million from Memic, $250 million cash held in trust by MedTech, and a PIPE allocation of $76 million. Security holders of Memic are projected to own 61.6% of the company, while MedTech’s stockholders are positioned to own 24.7%. The remaining stakes of 7.5% and 6.2% go to PIPE investors and MedTech sponsors, respectively.
Memic, based out of Tel Aviv, Israel, will keep its name when the deal closes, and its Chairman, Dr. Maurice R. Ferré, will become Executive Chairman of the newly-united company. Ferré had also been an independent director for MedTech. The transaction is expected to close in the fourth quarter of the year.
