Restoration Robotics, Inc., a global leader in robotic hair restoration, and Venus Concept Ltd., a privately-held global medical aesthetic technology leader, provided an update on their pending merger and Venus Concept announced 2018 year-end and first quarter 2019 results.
On March 15, 2019, Restoration Robotics and Venus Concept announced that they entered into a definitive merger agreement to combine the companies in an all-stock transaction. The transaction is expected to close in the third quarter of 2019, subject to the satisfaction of customary closing conditions, including the approval by the stockholders of each of Restoration Robotics and Venus Concept and the receipt of all necessary regulatory approvals. Restoration Robotics has filed a preliminary proxy statement/prospectus on Form S-4 with the Securities and Exchange Commission related to the stockholder votes necessary to approve the merger. The effectiveness of the Form S-4 proxy statement/prospectus is a condition to the closing of the merger.
Venus Concept Year-end 2018 and First Quarter 2019 Revenue and Combined Company Outlook
On an audited basis, Venus Concept’s revenue was $102.6 million for the year ended December 31, 2018, a 15.2% increase from $89.1 million for the year ended 2017, and revenue in the first quarter of 2019 was $24.6 million, a 15.1% increase from $21.4 million in the first quarter of 2018, with first quarter 2019 gross margins of 73.5 % as compared to 76.7% in the first quarter of 2018.
As announced in connection with the merger, 2019 revenue for the combined company is expected to be in the range of $130 to 135 million. Venus Concept is a private company and its shares are not publicly traded. Venus Concept has not historically reported quarterly financial results, and the estimated 2019 revenue and margin ranges set forth herein have not yet been reviewed or audited by Venus Concept’s auditing firm or Restoration Robotics’ auditing firm.
Date: June 10, 2019