CMR Surgical Explores $4 Billion Acquisition

Cambridge-based CMR Surgical, a leader in surgical robotics, is actively seeking to sell its business for approximately $4 billion. This move comes after the company successfully secured an additional $200 million from its current investors, following a significant regulatory approval in the United States.

Founded in 2014, CMR operates from Cambridge, where it also maintains its manufacturing facilities. Currently, the company employs over 500 personnel, with roughly 400 situated in the UK, and has successfully raised more than $1 billion since inception. This includes a notable funding round in 2021 that brought in $600 million, establishing a valuation of $3 billion, which was the largest private funding round in global medtech that year, along with the latest financial boost received in April.

The company enjoys backing from major investors such as SoftBank, Tencent, GE Health Care’s venture capital division, and Cambridge Innovation Capital, which collaborates with Cambridge University and local clusters to commercialize innovations.

Martin Frost, a co-founder of CMR and former CEO, has hinted at the possibility of an initial public offering in the future, with the company reportedly keeping this option open last year. Recently, the stock market has seen a slowdown in listings, exacerbated by the uncertainties associated with global trade policies.

CMR is at a critical juncture following a major milestone in October when its Versius Surgical System received approval from US regulators, marking a significant step for the company in the largest healthcare market worldwide.

The FDA has authorized the marketing of the Versius Surgical System for use in gallbladder removal surgeries on patients aged 22 and older. Mark Slack, CMR’s Chief Medical Officer and co-founder, emphasized that this approval is a “significant milestone” for the company.

Designed to emulate the human arm and assist surgeons during procedures, the Versius has become one of the most widely used surgical robotic systems globally, having been involved in over 30,000 surgical procedures across approximately 30 countries, including the UK. CMR continues to seek regulatory approval in large Asian healthcare markets.

As of Tuesday, both CMR and its investors have refrained from commenting on the potential sale, a development initially reported by the Financial Times.

The science minister, Lord Vallance of Balham, highlighted April’s funding round as a “clear vote of confidence” in the company. The UK government is currently formulating a new industrial strategy targeting eight key growth sectors, including life sciences, amidst a trend where numerous promising small and medium-sized UK health and tech companies are looking towards the US for investment and market expansion, rather than growing within the UK.

Massimiliano Colella, the current CEO of CMR, has previously held high-ranking positions in multinational healthcare firms, including at Smith & Nephew, a notable member of the FTSE 100 medtech sector.