Venus Concept Announces Merger with Restoration Robotics

Restoration Robotics (NASDAQ: HAIR), a global leader in robotic hair restoration, and Venus Concept, a privately-held global aesthetic technology leader, announced today that they have entered into a definitive merger agreement to combine the companies in an all-stock transaction.  The transaction is expected to close in the third quarter of 2019, subject to customary closing conditions, including the approval by stockholders of Restoration Robotics and Venus Concept and receipt of all necessary regulatory approvals.

This strategic combination, approved by the Boards of Directors of both companies, will create a company with:

  • A diversified product portfolio in the aesthetic market with nine major product platforms, including a focused effort on the hair restoration segment with both Restoration Robotics’ ARTAS Robotic Hair Restoration System and Venus Concept’s NeoGraft (handheld follicular unit extraction solution);

  • Global reach with commercial presence in over 60 countries and a direct selling presence in 29 markets;

  • Strong research and development capabilities with complementary teams with expertise in non-invasive, energy-based technologies (from the legacy Venus Concept team) and robotics, 3D pre-operative planning and software (from the legacy Restoration Robotics team); and

  • An attractive financial profile with 2019 revenue expected to be in the range of $130-135 million and estimated 2019 gross margins in the upper 60%s.

Venus Concept is an innovative global aesthetic technology leader with a broad product portfolio (eight major technology platforms), operating directly in 29 international markets and through distributors in 31 international markets, and the industry’s first subscription-based business model.  Venus Concept generated approximately $100 million (unaudited) in revenue in 2018, with gross margins of approximately 75%.  The company’s strategy has been to grow beyond the aesthetic industry’s traditional dermatology and plastic surgery markets into non-traditional markets including obstetrics and gynecology, family and general practice, internal medicine and medical spas. 

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