Simbonix develops 3D virtual reality simulation systems to train doctors in complex surgical and treatment procedures.
3D Systems (NYSE:DDD) (3DS) has agreed to acquire Simbionix for $120 million in cash. Simbionix has developed 3D virtual reality simulation systems for training doctors to conduct complex surgical and treatment procedures. The transaction is expected to be completed within the next 30 days, subject to customary closing conditions.
Simbonix was founded in 1997 by CEO of the company, Gary Zamler, COO and President Ran Bronstein, and CFO Boaz Tal. The company raised $14 million, $7 million raised in the last major financing round in 2008. Investors include Early Stage Partners, Koor, Etrinsic, Rad Biomed, and Israel-United States Binational Industrial Research and Development Foundation (BIRD-F) and the Office of the Israel Chief Scientist.
US-based 3D Systems offers a range of 3D printing systems in various areas including medicine and the company therefore sees the acquisition as synergy driven.
3DS CEO Avi Reichental said, “Simbionix is a perfect match for our healthcare business and its powerful technology, products, channels and domain expertise expands our 3D healthcare capabilities from the training room to the operating room, and extends our first mover advantage in this fast growing vertical.”
Headquartered in Cleveland, Ohio with an R&D center in Israel’s Airport City, Simbionix has pioneered patient-specific simulation with FDA-cleared solutions that are changing the way preparation for individual surgeries are carried out. Its proprietary simulation and training products are revolutionizing the way physicians practice and master surgical procedures with improved learning that can favorably impact patient outcomes.
Simbionix has dozens of employees and annual revenue of tens of millions of dollars. The company is probably profitable because 3DS says that the acquisition will contribute to its cash flow and profitability.
The company plans to operate Simbionix under the continued leadership of Gary Zamler, CEO of Simbionix, who will become Vice President and General Manager of Simbionix Products.