Stryker (NYSE:SYK) has announced a strategic partnership with UK-based medical robotics company CMR Surgical, including an approximately $400 million (£300 million) preferred equity investment and an exclusive option to acquire the business in the future.
The agreement will give Stryker an opportunity to expand its presence in the soft-tissue robotic surgery market while establishing a commercial relationship around CMR Surgical’s Versius robotic surgery platform.
Under the terms of the alliance, Stryker will become the exclusive sales agent for the Versius surgical robotics portfolio in the United States. CMR Surgical will continue to oversee product development and commercial operations in markets outside the US.
The investment remains subject to regulatory approvals and customary closing conditions. The companies did not disclose the full terms of Stryker’s exclusive option to acquire 100% of CMR Surgical’s outstanding equity.
Andy Pierce, Group President of Medsurg and Neurotechnology at Stryker, said the company had been assessing opportunities in the soft-tissue robotics sector for several years before selecting CMR Surgical as its strategic partner.
“We selected CMR Surgical and the Versius portfolio because of the opportunity to help healthcare providers grow robotic-assisted surgery adoption across a broad range of procedures in hospitals and ASCs,” Pierce said.
As part of the agreement, Pierce will also join CMR Surgical’s board of directors, strengthening Stryker’s involvement in the company’s strategic development.
CMR Surgical, founded in 2014 and headquartered in Cambridge, England, develops robotic systems designed to support minimally invasive surgical procedures.
Its Versius platform uses a modular design intended to provide flexibility in operating theatres and accommodate a range of soft-tissue procedures.
According to CMR Surgical, the system has been developed to integrate into existing surgical workflows, allowing hospitals to introduce robotic-assisted procedures without requiring extensive changes to operating room configurations.
Massimiliano Colella, Chief Executive Officer of CMR Surgical, said the investment would support the company’s continued international expansion and the development of its Versius portfolio.
The alliance provides CMR Surgical with additional financial resources and access to Stryker’s US commercial network, while allowing Stryker to enter the market through a partnership rather than an immediate full acquisition.
The exclusive purchase option could provide a route to eventual ownership of CMR Surgical, although neither company has announced a timetable or confirmed whether the option will be exercised.
The companies did not provide financial projections for the partnership or disclose the valuation that would apply to a potential future acquisition.
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