Sarcos Technology and Robotics Company Closes Acquisition of RE2, Inc.

SALT LAKE Town & PITTSBURGH, Pa.–(Business enterprise WIRE)–Sarcos Technological know-how and Robotics Company (“Sarcos”) (NASDAQ: STRC and STRCW) now declared the productive closing of the earlier announced acquisition of Pittsburgh-based mostly robotics firm RE2, Inc., a developer of autonomous and teleoperated mobile robotic programs for use in the aviation, construction, defense, electrical power, and health care industries. The closing of this transaction provides collectively two major business robotics groups concentrated on acquiring industrial robotic systems that make improvements to employee protection and productiveness.

Complete consideration for the transaction was $100 million, consisting of $30 million in funds and 14 million shares of Sarcos common stock that were both freshly issued or underlie assumed options. The inventory element represents dilution to Sarcos stockholders of approximately 5.7% primarily based on a absolutely-diluted share depend of somewhere around 231 million shares (which assumes the physical exercise of all outstanding warrants and includes all shares obtainable for issuance beneath our equity options).

“We are delighted to formally welcome the full RE2 team to the Sarcos family,” stated Kiva Allgood, President and CEO, Sarcos. “I have experienced the option to get the job done intently with the RE2 group, and our capabilities and goals are effectively matched. Our blended products lineup and know-how will let us to tackle consumer needs in a significantly broader array of industries and use-cases. I am very optimistic about our long term as a blended business.”

Sarcos expects to gain from potential earnings involved with RE2’s present contracts, like contracts with the U.S. federal government to create innovative robotic methods for underwater and industrial solutions, as nicely as a developmental partnership with JLG Industries, Inc., an Oshkosh Company corporation (NYSE: OSK) and foremost provider of cellular elevating perform platforms and accessibility equipment.

“The productivity essential, alongside with the COVID-19 pandemic, has accelerated the want for, and adoption of, robotic technologies further than the manufacturing unit ground,” claimed Frank Nerenhausen, Oshkosh Corporation Govt Vice President and President, JLG Industries. “In point, a large focal place in design and industrial applications now is remote procedure of tools that keeps personnel out of harm’s way. The blend of Sarcos and RE2 brings jointly two foremost robotics companies doing work to speed up the implementation of robotics and transfer the entry field forward. We seem forward to making on the outstanding progress we have by now designed in partnership with RE2.”

Subsequent the closure of the transaction, the Sarcos product or service line now features the Guardian® XO® full-human body, battery-powered industrial exoskeleton, Guardian® XT teleoperated dexterous cellular robotic avatar system, and the SapienTM line of arms – which include models with abilities ranging from precision arms for surgical applications to rugged outside arms for building responsibilities and the Sapien Sea Course process that can operate in shallow and deep drinking water.

Summary of Transaction Gains:

  • Envisioned to incorporate more concentrate on markets in aviation, building, health-related, and subsea to Sarcos’ full addressable industry
  • Sapien merchandise are predicted to carry before revenue and industrial product availability for the mixed corporation
  • Offers a substantially broader product or service set with a broad assortment of use circumstances and rate points for clients
  • Nearly doubles Sarcos’ engineering staff
  • Provides a next Sarcos locale in Pittsburgh, PA, to aid in attracting gifted new hires
  • RE2’s Detect outside laptop eyesight answer and Intellect autonomy software skills will be additional to Sarcos’ Cybernetic Training for Autonomous Robots (CYTAR) synthetic intelligence (AI) and machine finding out application

For far more information and facts on Sarcos and its award-successful merchandise portfolio, you should stop by www.sarcos.com.

About the Transaction

Wilson Sonsini Goodrich & Rosati, Experienced Corporation acted as authorized counsel and PJT Partners acted as fiscal advisor to Sarcos. Blank Rome LLP and Cherin Regulation Places of work, P.C. acted as authorized counsel and Stifel, Nicolaus & Organization acted as money advisor to RE2, Inc.

About Sarcos Engineering and Robotics Corporation

Sarcos Know-how and Robotics Company (NASDAQ: STRC and STRCW) is a chief in industrial robotic programs that increase human overall performance by combining human intelligence, intuition, and judgment with the toughness, endurance, and precision of devices to improve staff security and productivity, enable remote operations and decrease operational expenses. Sarcos’ cell robotic methods, like the Guardian® S, Guardian® GT, Guardian® XO®, and Guardian® XT™, alongside with the SapienTM relatives of robotic arms from RE2, RE2 Detect™ laptop vision software program, and RE2 Intellect™ autonomy software program, are created to revolutionize the long term of operate anywhere bodily demanding get the job done is accomplished. Sarcos is headquartered in Salt Lake City, Utah, and now has a second spot in Pittsburgh, PA. For much more information, be sure to pay a visit to www.sarcos.com.

Forward-Searching Statements RE2 Fiscal Info

This push launch is made up of ahead-hunting statements inside the which means of the Non-public Securities Litigation Reform Act of 1995, like statements about Sarcos’ ability to effectively integrate RE2 into its functions the solutions and markets of every single firm the anticipated gains of the acquisition of RE2 and Sarcos’ potential to realize people gains Sarcos’ functionality next the acquisition of RE2 Sarcos’ designs to extend its products availability Sarcos’ means to provide its products or obtain robotic-as-a-service subscriptions levels of competition from existing or foreseeable future firms and technologies and the anticipated sizing of and prospective for the acquisition to increase Sarcos’ addressable sector. Forward-searching statements are inherently subject matter to hazards, uncertainties, and assumptions. Frequently, statements that are not historic specifics, which includes statements concerning probable or assumed long term actions, business enterprise techniques, events, or final results of functions, are forward-looking statements. These statements may possibly be preceded by, followed by, or consist of the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or “continue” or comparable expressions. This sort of ahead-wanting statements contain risks and uncertainties that may bring about real events, effects, or overall performance to vary materially from people indicated by this sort of statements. These forward-on the lookout statements are based on Sarcos’ and RE2’s management’s present expectations and beliefs, as well as a number of assumptions concerning long run functions. Having said that, there can be no assurance that the events, benefits or tendencies determined in these ahead-hunting statements will occur or be achieved. Ahead-seeking statements discuss only as of the day they are created, and Sarcos is not underneath any obligation and expressly disclaims any obligation, to update, change or otherwise revise any forward-wanting statement, irrespective of whether as a outcome of new info, long run activities or in any other case, except as needed by legislation.

Audience ought to carefully overview the statements set forth in the experiences which Sarcos has submitted or will file from time to time with the Securities and Trade Fee (the “SEC”). In addition to factors beforehand disclosed in Sarcos’ experiences submitted with the SEC and people recognized in this press launch, the adhering to components, between many others, could induce precise results to vary materially from ahead-wanting statements or historical general performance: the chance of litigation or regulatory steps the means of Sarcos to properly integrate RE2’s functions, items and technologies the risk that the expected rewards of the transaction might not be realized or may possibly consider longer than anticipated to be recognized, including as a consequence of the effect of, or troubles arising from, the integration of the two corporations or as a result of the economic system and competitive elements in the regions where Sarcos and RE2 do business the effects of the COVID-19 pandemic on Sarcos’ and RE2’s enterprise Sarcos’ and RE2’s capability to retain critical personnel the dilution prompted by Sarcos’ issuance of additional shares of its typical stock in connection with the transaction Sarcos’ potential to execute on its small business strategy, handle staffing shortages and supply chain disruptions, launch its merchandise within anticipated timelines, establish new products and services and increase current products and services means to answer speedily to rising technological know-how traits capability to compete proficiently, recruit and keep certified staff and manage expansion and fees common competitive, economic, political and market place circumstances and other dangers and uncertainties established forth in the portion entitled “Risk Factors” and “Cautionary Observe Concerning Ahead-Searching Statements” in files filed by Sarcos from time to time with the SEC. The documents submitted by Sarcos with the SEC may perhaps be attained no cost of cost at the SEC’s internet site at www.sec.gov.

By Sia