Restoration Robotics News: HAIR Stock Soars on Venus Concept Merger

Venus Concept will own roughly 85% of the combined business

Restoration Robotics (NASDAQ:HAIR) announced that it has inked a deal with Venus Concept that will see the two companies merging.

Restoration Robotics NewsThe two businesses have reportedly reached a definitive merger agreement that will see them unite their assets in an all-stock deal. It is likely that the merger will close in the third quarter of 2019, barring any unforeseen circumstances and subject to existing closing conditions.

Restoration Robotics, which is based out of San Jose, Calif. and has rolled out some robotic hair restoration systems, will own roughly 15% of the new company. Meanwhile, Venus Concept will hold 85% of the other assets.

The move is being led by the companies, with part of the financial drive being carried out by EW Healthcare Partners, which is putting together a $21 million equity investment in the combined company’s common stock. Again, the move is dependent on whether or not the deal reaches an agreeable conclusion.

“The proposed transaction will create a combined company with the resources, product portfolio and expertise that will benefit our customers, employees and our shareholders,” said Ryan Rhodes, CEO of Restoration Robotics. “We are excited to partner with the Venus Concept team as we see the combination as an opportunity to become the leading player in minimally invasive hair restoration.”

Rhodes added that there are more than 600,000 procedures in addition to $4 billion spent annually in the global hair restoration world, which opens the door for the combined company to thrive in said market.

HAIR stock is up about 20% on Friday following the news.

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