Surgalign will enter the digital surgery space by acquiring HoloSurgical and its Augmented Reality and Artificial Intelligence (ARIA™) platform to enable spine surgery. The total transaction value is $125 million, comprising $42 million in cash at closing and future milestone payments. Surgalign expects the deal to close in 4Q20.
HoloSurgical is a Chicago-based private technology company founded in 2015 by augmented reality expert Professor Cristian Luciano, Ph.D., and spine surgeon Dr. Kris Siemionow, M.D., Ph.D. Professor Paul Lewicki, Ph.D., a pioneer in artificial intelligence, joined HoloSurgical in 2016. The company is developing and preparing for regulatory submission of the ARIA platform. HoloSurgical believes it to be the world's first technology designed to automatically segment, identify and recognize patient anatomy for autonomously assisting the surgeon throughout the surgery.
This acquisition by Surgalign is the latest example of mid-tier spine players adding digital surgery tools to their portfolios. As the largest companies in the market dominate the robotics space, smaller companies focus on planning, imaging and navigation tools. Recent notable examples include ATEC's terminated agreement to acquire EOS imaging and SeaSpine's co-marketing agreement with 7D Surgical. Enabling technologies across orthopedics are proven revenue generators through capital sales, implant pull-through, disposables and service contracts.