AutoLap is an image-based scope positioning system for laparoscopic procedures. Last October, Research Triangle Park, N.C.-based TransEnterix paid $5.8 million up front to MST for 3.15 million shares of the Yokneam, Israel-based company’s stock; a second payment of $6.6 million in cash, stock or cash and stock is due in October 2019.
The $47.0 million deal with GBI consists of $17.0 million in cash, in a $5.0 million payment by the end of this month and another $12.0 million due Nov. 30. GBI is also picking up an equity stake in TransEnterix worth $30.0 million, paying $2 per share by Sept. 30.
TRXC shares were trading at $1.73 apiece today, up 36.2%, in mid-afternoon trading.
TransEnterix said it will keep the other intellectual property it acquired in the MST deal, cross-licensing with GBI for AutoLap-related IP in return for retained IP to be used with AutoLap.
“AutoLap has a track record of success with laparoscopic surgeons across a wide variety of procedures around the globe. GBIL has been a great partner for us in the past, and we believe they will be successful in bringing the benefits of the AutoLap product to the greatest number of laparoscopic surgeons worldwide,” president & CEO Todd Pope said in prepared remarks. “This divestiture aligns with our continued focus on commercializing the Senhance Surgical System platform and progressing digital laparoscopy, while securing additional funds for our operations.”
“We see a tremendous commercial opportunity for the AutoLap System and are extremely enthusiastic to work with TransEnterix to bring this product to China along with the rest of the world,” added GBI president Rachel Wang.