Stryker entered into a strategic alliance with CMR Surgical that includes an approximately $400 million (£300 million) preferred equity investment and an exclusive option to acquire 100% of CMR Surgical’s outstanding equity in the future.
The partnership is designed to combine CMR Surgical’s established soft-tissue robotic surgery platform and clinical experience with Stryker’s scale, customer relationships, and commercial reach.
As part of the agreement, Stryker will become the exclusive U.S. sales agent for CMR Surgical’s Versius portfolio.
CMR Surgical will continue leading product development and commercialization outside the United States.
The companies said the alliance is intended to accelerate adoption of robotic-assisted surgery as healthcare providers increasingly seek scalable solutions that can fit within existing operating room workflows.
CMR Surgical’s Versius platform is a second-generation robotic system designed for a broad range of soft-tissue procedures.
Its modular architecture is intended to provide flexibility across procedures, surgeon access, and sites of care, including hospitals and ambulatory surgery centers.
The system is also designed to allow health systems to expand robotic-assisted surgery programs while maintaining operational flexibility and supporting long-term program economics.
Stryker said soft-tissue robotics represents a high-growth adjacency that complements its existing businesses in endoscopy, visualization, and enabling technologies.
The company said it has evaluated the market for several years and views the alliance with CMR Surgical as a disciplined way to enter the segment.
For CMR Surgical, the investment provides additional capital to support continued innovation and global commercialization of the Versius portfolio.
The transaction also gives CMR access to Stryker’s extensive U.S. commercial infrastructure and customer relationships as it seeks to expand adoption in the American market.
Stryker’s approximately $400 million investment will be made through preferred equity and remains subject to customary closing conditions.
The preferred equity investment also grants Stryker an exclusive option to acquire the remaining equity of CMR Surgical in the future, subject to the terms of the agreement.
The transaction is subject to regulatory approvals and other customary closing conditions.
Andy Pierce, Group President of Medsurg and Neurotechnology at Stryker, will also join CMR Surgical’s board of directors.
CMR Surgical was founded in 2014 and is headquartered in Cambridge, England.
The company develops Versius Plus, a next-generation surgical robot designed to support minimally invasive robotic procedures.
Stryker is a global medical technology company operating across MedSurg, Neurotechnology, and Orthopaedics and says its products and services impact more than 150 million patients annually.
KEY QUOTES:
“Soft-tissue robotics is a high-growth adjacency and a natural extension of Stryker’s strengths in endoscopy, visualization and enabling technologies. We have evaluated the segment carefully for years, and this alliance represents a thoughtful and disciplined entry that combines the complementary strengths of both companies. 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.”
Andy Pierce, Group President, Medsurg and Neurotechnology at Stryker
“This strategic alliance is a significant milestone for CMR and a strong endorsement of the technology, clinical experience and global business we have built. Stryker’s investment will give us additional strength to accelerate innovation and the continued global expansion of the Versius portfolio, while its scale and deep customer relationships create a significant growth opportunity in the United States. We also look forward to welcoming Andy Pierce to our board of directors and benefiting from his more than 30 years of MedTech leadership experience at Stryker as we continue expanding access to robotic-assisted surgery globally.”
Massimiliano Colella, Chief Executive Officer of CMR Surgical
