Asensus Surgical acquired by KARL STORZ in cash deal By Investing.com

RESEARCH TRIANGLE PARK, N.C. – Asensus Surgical, Inc. (NYSE American: ASXC), known for its digital solutions in the operating room, has been acquired by KARL STORZ Group, a key player in endoscopy and medical imaging. The merger, which was finalized following approval from Asensus Surgical stockholders, resulted in KARL STORZ Endoscopy-America, Inc. purchasing all outstanding shares of Asensus Surgical at $0.35 per share in cash.

With this acquisition, Asensus Surgical becomes a subsidiary of KARL STORZ, and its common stock will no longer be traded on the NYSE American Exchange. Anthony Fernando, President and CEO of Asensus Surgical, expressed enthusiasm about the merger, highlighting the potential for accelerated development and delivery of their robotic and digital surgical solutions. He anticipates that this partnership will foster advancements in surgical precision and patient outcomes globally.

KARL STORZ’s CEO, Karl-Christian Storz, echoed these sentiments, emphasizing the complementary nature of Asensus’s technology with their existing surgical solutions portfolio. He also welcomed over 200 Asensus employees, expressing confidence in their combined efforts to transform healthcare.

Asensus Surgical has been recognized for its first intra-operative Augmented Intelligence technology and its novel approach to digitizing laparoscopy. The company’s first-generation Senhance robot has been introduced to the market, and its second-generation LUNA™ System, which is still under development and not yet approved or available for sale, is expected to enhance robotic precision and range of motion in surgery.

The merger is a strategic move for KARL STORZ, aiming to strengthen its market presence in the burgeoning robotic and digital surgical sector. Financial advisory for Asensus Surgical was provided by Jefferies LLC, with Ballard Spahr LLP serving as legal counsel. KARL STORZ was advised by UBS Investment Bank, with Ropes & Gray LLP acting as legal counsel.

This news is based on a press release statement and reflects the ongoing consolidation and innovation within the medical technology industry, as companies seek to expand their capabilities and offer more integrated solutions to healthcare providers.

In other recent news, Asensus Surgical Inc. has experienced significant developments. The company’s stockholders have voted in favor of a merger with KARL STORZ Endoscopy-America, Inc. This decision will result in Asensus Surgical becoming a wholly-owned subsidiary of KARL STORZ, a move that is expected to enhance its capabilities in the medical technology space.

The Q2 financial results of Asensus Surgical revealed a rise in revenue to $2.2 million from the previous year’s $1.1 million. However, the company also reported a net loss attributable to common stockholders of $25.7 million, and an adjusted net loss of $18.1 million after excluding non-cash charges. As of June 30, 2024, the company’s cash and cash equivalents stood at $7.8 million.

These are the latest developments surrounding Asensus Surgical Inc., including the approved merger and recent financial results.

InvestingPro Insights

Asensus Surgical’s acquisition by KARL STORZ Group comes at a time when the company has shown a significant return over the past three months, with a 42.35% increase in its share price. This performance indicates a strong investor confidence leading up to the acquisition, which could be attributed to the potential synergies identified between Asensus’s technology and KARL STORZ’s surgical solutions portfolio.

However, InvestingPro data paints a picture of a company that has faced financial challenges. Asensus Surgical reported revenue growth of 39.05% in the last twelve months as of Q2 2024, which is a robust figure, but it is important to note that the company operates at a negative gross profit margin of -30.45%. Additionally, the company’s operating income margin was deeply negative at -848.7%, reflecting operational difficulties.

The InvestingPro Tips suggest caution, as Asensus Surgical has weak gross profit margins and analysts do not expect the company to be profitable this year. Moreover, the company’s short-term obligations exceed its liquid assets, which could have been a factor in the decision to merge with a financially stronger company like KARL STORZ.

For readers interested in a deeper dive into Asensus Surgical’s financial health and market performance, InvestingPro offers additional tips and insights. There are currently six more InvestingPro Tips available, which provide a comprehensive analysis of the company’s financials and market position.

As the merger unfolds, stakeholders of both Asensus Surgical and KARL STORZ will be closely monitoring how the integration of technologies and resources will impact the combined entity’s financials and market presence in the digital and robotic surgical sector.

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