Ekso Bionics (Nasdaq: EKSO) (the “Company”), an industry leader in exoskeleton technology for medical and industrial use, today announced the acquisition of the Human Motion and Control (“HMC”) Business Unit from Parker Hannifin Corporation (“Parker”), a global leader in motion and control technologies. The acquisition includes the Indego lower limb exoskeleton line of products as well as the planned development of robotic assisted orthotic and prosthetic devices.
This complementary acquisition expands Ekso’s product offering across the continuum of care to home and community use markets, grows Ekso’s product pipeline and adds strategic relationships with key commercial and research partners, including Vanderbilt University. The collaboration with Vanderbilt is expected to provide a path for future research and product development.
“The strategic acquisition of Parker’s uniquely-powered and adjustable Indego exoskeletons significantly builds our product offering and extends our market opportunity to the home,” said Steven Sherman, Chairman and Executive Chair of Ekso Bionics. “With the addition of HMC, we intend to grow our global footprint and increase our market position in lower extremity robotic products driven by our shared innovations and leading-edge technologies.”
Parker’s devices are FDA-cleared lower-limb powered exoskeletons that enable task-specific, overground gait training to patients with weakness or paralysis in their lower extremities. Products include Indego Personal, a light-weight exoskeleton for safe use in most home and community environments, and Indego Therapy, an adjustable exoskeleton for patients with spinal cord injury and stroke complementing Ekso’s product offering in outpatient facilities.
“Indego is one of the most advanced and broadest range of powered and intelligent devices for home use, which represents a strategic fit for Ekso,” said Scott Davis, Chief Executive Officer of Ekso Bionics. “This acquisition is expected to contribute immediately to our top-line results, improve operating efficiencies and establish Ekso as a leader in lower extremity robotics. Moving forward, we plan to continue exploring future growth opportunities that align with our strategy.”
The combined companies have made significant investments into developing world-class technology and distribution with devices deployed in over 400 institutions used by thousands of patients worldwide. Highlighted by a product commercialization strategy with Vanderbilt University that spans a decade, the acquisition of HMC brings Ekso an elite academic partner to help power new product development.
Ekso Bionics acquired all of Parker’s HMC global business assets in the U.S. and Europe for an aggregate purchase price of $10 million. Ekso paid $5 million at closing and delivered a $5 million subordinated, unsecured zero coupon note payable quarterly over four years, commencing December 31, 2023.
“We are pleased to have finalized an agreement with Ekso Bionics as a strategic buyer for our Human Motion and Control business,” said Mark Czaja, Vice President – Chief Technology and Innovation Officer of Parker. “This is a great technology with an outstanding team that has built a highly differentiated product offering to help improve gait performance and outcomes for people living with mobility impairments. The acquisition will allow Ekso to leverage their robust commercial and clinical teams to ultimately enable this important technology to reach more patients in need across the continuum of care.”
Ekso Bionics Leadership Transition
In connection with the acquisition, Mr. Sherman resigned as the Company’s Chief Executive Officer, and the Ekso Bionics Board of Directors appointed Mr. Davis as Chief Executive Officer, each effective immediately. Mr. Davis has served as the Company’s President and Chief Operating Officer since January 2022. Mr. Sherman will continue to serve as Chairman of the Board and will begin serving as Executive Chair of the Company.
“I am proud of our recent accomplishments to position Ekso for long-term growth, culminating with today’s important acquisition,” said Mr. Sherman. “I offer my congratulations to Scott on his well-deserved promotion. On behalf of the Board, we have the utmost confidence that he will sustain our growth momentum and maximize shareholder value.”