Memic Innovative Surgery and the SPAC called MedTech Acquisition Corp. are calling off the merger that would have taken Memic public.
The two companies said the decision was mutual — the result of market conditions and associated volatility due to recent world events. Memic is the developer of Hominis — the first FDA-approved, robotically assisted surgical device for performing transvaginal hysterectomy.
When announcing the proposed merger last year, the companies had said the deal would create a combined company with an estimated pro-forma equity value of more than $1 billion.
“While we are disappointed that our proposed business combination with Memic will not be consummated, we believe that Memic’s Hominis system and its innovative technology, as well as Memic’s highly accomplished management team, will position Memic for future success,” said Chris Dewey, CEO of MedTech, a special purpose acquisition company.
Memic CEO Dvir Cohen sounded a note of optimism: “With the recent adoption of our Hominis system by three leading U.S. hospitals, we are excited about the ability of the Hominis system to perform robotic transvaginal techniques that were previously unfeasible, fulfilling a significant unmet need in women’s health, with the potential to be applied to a broad range of indications in the future including general surgery.”
Medtech and many other industries have seen many young companies go public through SPAC deals in recent years. But the attractiveness of SPACs may be waning amid a stock market rollercoaster ride. The volatility stems from Russia’s invasion of Ukraine, inflation worries, expectations of a resulting Fed rate hike, tough earnings reports for social media companies such as Meta (formerly Facebook), ongoing supply chain and labor shortage woes, and more. (There’s also good news: U.S. jobs and wages are rising rapidly.)
Last month, HeartFlow and a special purpose acquisition company called Longview Acquisition Corp. called off a merger. They also blamed unfavorable market conditions.