Intuitive Surgical ($ISRG), beset by quality problems relating to its da Vinci surgical robots, will snatch up medical shape-sensing technology from Virginia's Luna Innovations in a deal worth up to $30 million.
Luna said it will receive $12 million up front split into two tranches, with the potential of getting up to $18 million more once agreed-upon development and commercial milestones are met.
As part of the deal, California-based Intuitive will buy Luna's fiber-optic shape-sensing and localization technology, plus related patents. And Intuitive said it will hire some engineering employees who once worked in Luna's medical shape-sensing division.
Luna, which filed for bankruptcy protection in 2009, said it will focus instead on fiber-optic sensing technology, which can help improve the manufacturing and testing of composite and noncomposite materials, structures and systems. Also, the company will keep selling its test and measurement products to the telecommunications industry.
David Larkin, Intuitive's vice president of engineering, said in a statement that the company is looking forward to adding the Luna medical shape-sensing team to its own operations and is excited about "the possibilities around this technology."
Intuitive gains new technology (for next-generation surgical robots, maybe?) at a time when it could use some additional good news. Earlier this month, the company disclosed that 2013 fourth-quarter revenue exceeded expectations, following months of controversy over quality problems and adverse event reports regarding its da Vinci surgical robots.
- read the release