Sarcos Technology and Robotics Corporation announced that it has entered into a definitive merger agreement to acquire Pittsburgh-based RE2, Inc., a developer of autonomous and remotely operated mobile robotic systems for the aviation, construction, defense, energy and medicine. This transaction brings together two leading commercial robotics teams focused on industrial robotic technologies that improve worker safety and productivity. The consideration for the transaction is $100 million, consisting of $30 million in cash, which Sarcos expects to fund with available cash, and $70 million in Sarcos common stock.
Following the transaction, the shared product suite will allow the combined company to target a much wider range of customer needs in the commercial and defense sectors. The initial product line will include the battery-powered Guardian XO full-body industrial exoskeleton, the Guardian XT teleoperated mobile robotic avatar system, and the Sapien arm line which includes several models with capabilities ranging from precision arms for applications surgical, rugged exterior arms for construction tasks, and the Sapien Sea Class system that can operate in shallow and deep water to perform inspection and maintenance tasks across multiple industries.
RE2 has won major programs in surgical robotics, aircraft maintenance, and construction automation. It has also marketed over 650 robotic arm products capable of operating in unstructured environments since 2010. RE2’s proven track record of serving government and commercial customers makes it an ideal addition to the Sarcos team.
RE2 generated revenues of approximately $15 million in 2021 and Sarcos does not expect the acquisition to have a material effect on its cash burn rate. Sarcos expects to benefit from revenues associated with existing RE2 contracts, which include government contracts to develop innovative robotic systems for subsea and industrial solutions and a development partnership with a leading platform manufacturer and supplier. – mobile elevating work forms and access equipment.
In addition, the combined company plans to advance robotic autonomy in unstructured environments by leveraging RE2’s Detect outdoor computer vision solution and Intellect autonomy software, as well as the AI and intelligence program. machine learning Sarcos Cybernetic Training for Autonomous Robots (CYTAR).
Summary of the benefits of the transaction
- Expected to increase total addressable market including additional target markets in aviation, construction, medical and submarine
- Sapien products expected to drive earlier revenue and commercialization for the combined company
- Provides a much broader set of products with a wide range of use cases and price points for different customers
- Sarcos engineering team nearly doubles
- Adds a second location to help attract talented new recruits
RE2 was founded by President and CEO Jorgen Pedersen in 2001 as a spin-off from Carnegie Mellon University’s National Robotics Engineering Center (NREC) and has over 100 employees in its offices along the Robotics Row of Pittsburgh. Pedersen will become chief operating officer of Sarcos once the combination is complete.
“We are delighted to welcome the RE2 team to Sarcos,” said Kiva Allgood, President and CEO of Sarcos. “This transaction brings an innovative company with a range of complementary but additive products into the Sarcos family, enabling us to offer a much wider range of solutions to meet our customers’ needs. It will also allow us to expand our offerings into new industries such as medical and submarine, deepen our team of robotics experts, and advance the development of artificial intelligence and machine learning technologies. for use in unstructured environments.
“The RE2 team is looking forward to joining Sarcos and accelerating the development and adoption of intelligent robotic systems,” said Jorgen Pedersen, President and CEO of RE2. “Around the world, robotic technologies are changing the way workers perform complex and often dangerous tasks, especially at a time of widespread skill shortages. By combining our organizations, Sarcos can now offer a variety of robotic solutions to a wider customer base.
The transaction will close upon satisfaction of closing conditions, which Sarcos expects to complete in the second quarter.