And yet another SPAC device bites the dust
Yet another device company is throwing in the towel for a Special Purpose Acquisition Company (SPAC) merger. The surgical robotics company, Memic Innovative Surgery and Medtech Acquisition Corps have announced the mutual termination of a merger.
The two companies terminated the merger due to market conditions and associated volatility due to recent world events. The proposed merger was first announced in August last year and would have given the combined company a valuation of $1 billion.
Memic, which is based in Tel Aviv, Israel and has a subsidiary in Fort Lauderdale, Florida, developed the Hominis surgical robotics platform. The device received de novo marketing clearance from the FDA in February 2021 for use in single-site, natural orifice laparoscopic-assisted benign transvaginal surgical procedures, including benign hysterectomy.
“While we are disappointed that our proposed business combination with Memic will not materialize, we believe that Memic’s Hominis system and its innovative technology, together with Memic’s highly skilled management team, will position Memic for future success. “said Chris Dewey, CEO. of MedTech.
The termination of the merger follows closely behind Redwood City, Calif., Heartflow and Longview Acquisition Corporation ending a mutually planned merger. Both men also cited unfavorable market conditions as the reason for the end of the agreement.
SPACs have become a popular way for medtech companies to go public during the pandemic. But some mergers have been reduced. In August, LumiraDx reduced the terms of its SPAC with CA Healthcare Acquisition Corp. due to a drop in demand for COVID-19 testing. The London-based tester bumped the valuation from $5 billion to $3 billion.
EY’s John Babbit provided insight into the current state of SPACs, noting that market volatility would play a big role in mergers, during a January interview with MD+DI for an episode of the Let’s Talk Medtech podcast. .
“I think the real question is whether these SPACs will come to fruition and be de-spaced if you wish, here in 2022,” Babbit said in the episode. “[SPACs] are an attractive capital option. I think, and we talked about it in one of our panels during [the 40th annual JP Morgan Healthcare Conference]that concern is market volatility right now. [That volatility] could steer some of these private companies more towards an alternative to mergers and acquisitions rather than an IPO.