This morning, Sarcos announced plans to acquire robotics company RE2. The $100 million deal includes $30 million in cash and $70 million in Sarcos stock. The company says it will pay cash for the first time, no doubt a windfall after last year’s decision to go public through SPAC.
Pittsburgh-based RE2 is best known for its remote-controlled mobile manipulation systems, one category in which its future parent company is firmly established. However, despite potential layoffs, Sarcos noted that more than 100 of its employees will remain on board during the transition. This also applies to CEO Jørgen Pedersen, who will take over as chief operating officer of the newly merged company.
“The RE2 team looks forward to joining Sarcos and accelerating the development and deployment of intelligent robotic systems,” Pedersen said in a press release. “All over the world, robotic technology is changing the way workers perform complex, often dangerous tasks, especially in times of widespread shortages of skilled labor. By bringing our organizations together, Sarcos is now able to offer a wide range of robotic solutions to a wider customer base.
Sarcos’ portfolio, currently focused on industrial and defense (read: military) applications, will be expanded as part of the deal. This includes submersible/underwater applications as well as the medical market, which is still fairly open to the robotics industry. It is likely that some of the product offerings will be merged after the deal closes, although Sarcos noted the move would nearly double its technical staff.
Sarcos CEO Kiva Allgood said, “This transaction brings an innovative company with a complementary yet complementary product line to the Sarcos family, allowing us to offer a wide range of solutions to meet our customers’ needs.” “This allows us to expand our offerings into new industries such as medicine and submarines, expand our team of robotics experts, and advance the development of AI and machine learning technologies for use in unstructured environments.”
The deal is expected to close sometime in the second quarter.