Sarcos Technology and Robotics Corp. this week announced that it has successfully closed its $100 million acquisition of RE2 Inc. It said the transaction “brings together two leading commercial robotics teams focused on developing industrial robotic technologies that improve worker safety and productivity.”
“We are delighted to officially welcome the entire RE2 team to the Sarcos family,” stated Kiva Allgood, president and CEO of, Sarcos. “I have had the opportunity to work closely with the RE2 team, and our capabilities and objectives are well-matched. Our combined product lineup and expertise will allow us to address customer needs in a much wider range of industries and use cases. I am very optimistic about our future as a combined company.”
Sarcos said it has developed systems to combine human intelligence, instinct, and judgment with the strength, endurance, and precision of machines to enhance employee safety and productivity, enable remote operations, and reduce operational costs.
The Salt Lake City-based company's product line includes the Guardian S inspection robot, the Guardian GT mobile manipulator, the Guardian XO full-body industrial exoskeleton, and the Guardian XT teleoperated avatar.
Sarcos to add RE2 tech to portfolio
Pittsburgh-based RE2 Robotics had developed autonomous and teleoperated mobile robots for use in the aviation, construction, defense, energy, subsea, and medical industries. Jorgen Pedersen, who founded RE2 in 2001 and was its president and CEO, is now chief operating officer of Sarcos.
Upon the acquisition's closure, Sarcos will now also be offering RE2's Sapien family of robot arms, which includes models with capabilities ranging from precision arms for surgical applications to rugged outdoor arms for construction tasks.
The line also includes the Sapien Sea Class system, which can operate in shallow and deep water. The combined company said it expects the Sapien products to bring earlier revenue and commercial product availability.
Sarcos plans to add RE2’s Detect outdoor computer vision system and Intellect autonomy software to its Cybernetic Training for Autonomous Robots (CYTAR) artificial intelligence and machine learning program.
The company added that its broadened product set will address a wide range of use cases and price points for customers, widening its total addressable market. Sarcos offers its systems through a robotics-as-a-service (RaaS) model.
With RE2's team, Sarcos said it will nearly double the size of ite engineering team and establish a second location in Pittsburgh to attract and hire new talent.
Financial details
Total consideration for the transaction, which was first announced last month, was $100 million. It consisted of $30 million in cash and 14 million shares of Sarcos common stock that were either newly issued or underlie assumed options, stated Sarcos. The stock component represents dilution to Sarcos stockholders of approximately 5.7%, based on a fully-diluted share count of approximately 231 million shares. This assumed the exercise of all outstanding warrants and includes all shares available for issuance under our equity plans.
Sarcos said it expects to benefit from RE2’s existing contracts, including contracts with the U.S. government to develop underwater and industrial robots, as well as a developmental partnership with JLG Industries Inc., an Oshkosh Corp. company and provider of mobile elevating work platforms and access equipment.
“The productivity imperative, along with the COVID-19 pandemic, has accelerated the need for, and adoption of, robotic technologies beyond the factory floor,” said Frank Nerenhausen, executive vice president at Oshkosh and president of JLG Industries. “In fact, a large focal area in construction and industrial applications today is remote operation of equipment that keeps workers out of harm’s way.”
“The combination of Sarcos and RE2 brings together two leading robotics companies working to accelerate the implementation of robotics and move the access industry forward,” he said. “We look forward to building on the excellent progress we have already made in partnership with RE2.”
Wilson Sonsini Goodrich & Rosati, Professional Corp. acted as legal counsel, and PJT Partners acted as financial advisor to Sarcos, which merged with special-purpose acquisition company (SPAC) Rotor Acquisition Corp. last year. Blank Rome LLP and Cherin Law Offices P.C. acted as legal counsel, and Stifel, Nicolaus & Co. acted as financial advisor to RE2.
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