Exoskeleton technologist, Ekso Bionics is acquiring the Human Motion and Control (HMC) Business Unit from Parker Hannifin Corporation. Parker Hannifin is a global leader in motion and control technologies. The acquisition includes the Indego lower limb exoskeleton line of products. It also extends to the planned development of robotic assisted orthotic and prosthetic devices.
Ekso Bionics® is a leading developer of exoskeleton solutions. Its products amplify human potential by supporting or enhancing strength, endurance and mobility across medical and industrial applications. Founded in 2005 Ekso is a past visitor to our pages. Importantly the company is the only known exoskeleton company to offer such a broad range of technologies. The result means it is helping those with paralysis to stand up and walk and enhancing human capabilities on job sites across the globe.
Ekso Bionics has acquired all of Parker’s HMC global business assets in the U.S. and Europe for an aggregate purchase price of $10 million. It paid $5 million at closing and delivered a $5 million subordinated, unsecured zero coupon note. This is payable quarterly over four years, commencing December 31, 2023.
The company says this complementary acquisition will expand its product offering across the continuum of care to home and community use markets. Furthermore it grows Ekso’s product pipeline and adds strategic relationships with key commercial and research partners. This extends to Vanderbilt University, a collaboration that is expected to provide a path for future research and product development.
Parker’s devices are FDA-cleared lower-limb powered exoskeletons. Specifically they 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. Also, Indego Therapy is an adjustable exoskeleton for patients with spinal cord injury and stroke complementing Ekso’s product offering in outpatient facilities.
Steven Sherman, Chairman and Executive Chair of Ekso Bionics stated; “The strategic acquisition of Parker’s uniquely-powered and adjustable Indego exoskeletons significantly builds our product offering because it extends our market opportunity to the home.
“With the addition of HMC, we intend to grow our global footprint and increase our market position. Our shared innovations and leading-edge technologies will drive the lower extremity robotic products.”
“Indego is one of the most advanced and broadest range of powered and intelligent devices for home use. As a result this 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 because it will improve operating efficiencies. Moreover it will help establish Ekso as a leader in lower extremity robotics. Moving forward, we plan to continue exploring future growth opportunities that align with our strategy.”
“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. Together we’re helping to improve gait performance and outcomes for people living with mobility impairments. The acquisition will allow Ekso to leverage their robust commercial and clinical teams. As a consequence it will 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. The Ekso Bionics Board of Directors appointed Mr Davis as Chief Executive Officer, 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.”