ReWalk Robotics (Nasdaq:RWLK) announced that it executed an agreement to acquire AlterG, an anti-gravity system provider.
The deal includes a purchase price of approximately $19 million at closing. ReWalk expects to close the deal on Aug. 11, with closing contingent upon the satisfaction of customary closing conditions. Additional cash earnouts may be paid based upon a percentage of AlterG’s future revenue growth in the next two.
ReWalk aims to strengthen its long-term financial position and path to profitability through this deal. In fiscal 2022, AlterG generated $20 million in revenue and recorded a positive operating profit.
“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,” said Larry Jasinski, CEO of ReWalk. “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.”
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More about AlterG
AlterG provides anti-gravity systems for use in physical and neurological rehabilitation. The transaction adds its current and future product lines to ReWalk’s existing portfolio of neurorehabilitation products. ReWalk also expects it to substantially expand its customer-facing capabilities and advance future growth opportunities.
The anti-gravity systems developed by AlterG use patented, NASA-derived differential air pressure technology. They reduce the effects of gravity, allowing people to move in new ways with finely calibrated support and reduced pain. AlterG designed its technology to enable users to recover mobility, improve wellness and enhance physical performance.
“AlterG and ReWalk share a common vision of combining synergistic industry-leading products into a world-class portfolio, which leverages our collective strengths,” said Charles Remsberg, CEO of AlterG. “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.
