January 31, 2023

Enterprise JM

Do the Business

Sarcos Know-how and Robotics Company Closes Acquisition of RE2, Inc.

SALT LAKE Town & PITTSBURGH, Pa.–(Organization WIRE)–Sarcos Engineering and Robotics Corporation (“Sarcos”) (NASDAQ: STRC and STRCW) nowadays announced the successful closing of the formerly introduced acquisition of Pittsburgh-centered robotics enterprise RE2, Inc., a developer of autonomous and teleoperated cell robotic programs for use in the aviation, design, protection, power, and professional medical industries. The closing of this transaction provides together two main commercial robotics groups targeted on establishing industrial robotic technologies that increase worker basic safety and productivity.

Overall thought for the transaction was $100 million, consisting of $30 million in money and 14 million shares of Sarcos typical inventory that were possibly newly issued or underlie assumed options. The stock part signifies dilution to Sarcos stockholders of somewhere around 5.7% primarily based on a fully-diluted share depend of approximately 231 million shares (which assumes the physical exercise of all fantastic warrants and involves all shares offered for issuance below our fairness options).

“We are delighted to officially welcome the total RE2 team to the Sarcos family members,” mentioned Kiva Allgood, President and CEO, Sarcos. “I have had the option to do the job closely with the RE2 staff, and our abilities and aims are perfectly matched. Our merged solution lineup and abilities will make it possible for us to tackle buyer demands in a substantially broader vary of industries and use-situations. I am extremely optimistic about our upcoming as a combined enterprise.”

Sarcos expects to benefit from upcoming revenue linked with RE2’s present contracts, such as contracts with the U.S. federal government to develop modern robotic devices for underwater and industrial remedies, as properly as a developmental partnership with JLG Industries, Inc., an Oshkosh Company organization (NYSE: OSK) and leading supplier of cell elevating do the job platforms and entry equipment.

“The productivity very important, together with the COVID-19 pandemic, has accelerated the have to have for, and adoption of, robotic systems beyond the manufacturing facility floor,” mentioned Frank Nerenhausen, Oshkosh Corporation Govt Vice President and President, JLG Industries. “In reality, a significant focal area in design and industrial apps nowadays is remote operation of tools that keeps employees out of harm’s way. The combination of Sarcos and RE2 delivers together two top robotics providers working to accelerate the implementation of robotics and shift the obtain industry ahead. We search forward to developing on the exceptional progress we have now produced in partnership with RE2.”

Adhering to the closure of the transaction, the Sarcos item line now includes the Guardian® XO® whole-physique, battery-driven industrial exoskeleton, Guardian® XT teleoperated dexterous mobile robotic avatar system, and the SapienTM line of arms – together with types with abilities ranging from precision arms for surgical programs to rugged outside arms for design responsibilities and the Sapien Sea Course system that can operate in shallow and deep drinking water.

Summary of Transaction Positive aspects:

  • Expected to increase further target marketplaces in aviation, design, health-related, and subsea to Sarcos’ overall addressable marketplace
  • Sapien merchandise are anticipated to bring previously profits and industrial products availability for the combined company
  • Presents a considerably broader merchandise set with a wide variety of use situations and rate details for shoppers
  • Practically doubles Sarcos’ engineering staff
  • Provides a next Sarcos location in Pittsburgh, PA, to guide in attracting talented new hires
  • RE2’s Detect outdoor personal computer vision option and Intellect autonomy program abilities will be added to Sarcos’ Cybernetic Schooling for Autonomous Robots (CYTAR) synthetic intelligence (AI) and equipment finding out plan

For far more information and facts on Sarcos and its award-profitable item portfolio, please stop by www.sarcos.com.

About the Transaction

Wilson Sonsini Goodrich & Rosati, Expert Company acted as authorized counsel and PJT Partners acted as economic advisor to Sarcos. Blank Rome LLP and Cherin Legislation Workplaces, P.C. acted as authorized counsel and Stifel, Nicolaus & Enterprise acted as financial advisor to RE2, Inc.

About Sarcos Technological innovation and Robotics Corporation

Sarcos Technology and Robotics Corporation (NASDAQ: STRC and STRCW) is a leader in industrial robotic programs that augment human efficiency by combining human intelligence, intuition, and judgment with the toughness, stamina, and precision of machines to improve employee security and productiveness, empower distant functions and decrease operational charges. Sarcos’ cell robotic systems, like the Guardian® S, Guardian® GT, Guardian® XO®, and Guardian® XT™, alongside with the SapienTM spouse and children of robotic arms from RE2, RE2 Detect™ personal computer vision software program, and RE2 Intellect™ autonomy application, are developed to revolutionize the potential of do the job wherever physically demanding work is performed. Sarcos is headquartered in Salt Lake City, Utah, and now has a next site in Pittsburgh, PA. For much more facts, you should go to www.sarcos.com.

Ahead-Wanting Statements RE2 Money Information and facts

This press launch consists of forward-on the lookout statements in just the meaning of the Non-public Securities Litigation Reform Act of 1995, together with statements about Sarcos’ means to efficiently integrate RE2 into its functions the items and markets of every organization the envisioned advantages of the acquisition of RE2 and Sarcos’ means to notice those people positive aspects Sarcos’ efficiency next the acquisition of RE2 Sarcos’ plans to expand its solution availability Sarcos’ capacity to offer its goods or receive robot-as-a-service subscriptions levels of competition from current or future enterprises and technologies and the envisioned sizing of and opportunity for the acquisition to increase Sarcos’ addressable current market. Forward-hunting statements are inherently matter to risks, uncertainties, and assumptions. Commonly, statements that are not historical information, which include statements regarding achievable or assumed foreseeable future steps, small business strategies, activities, or effects of operations, are ahead-hunting statements. These statements could be preceded by, adopted by, or consist of the phrases “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or “continue” or related expressions. This kind of ahead-searching statements require risks and uncertainties that may trigger precise events, success, or functionality to vary materially from these indicated by this sort of statements. These ahead-hunting statements are centered on Sarcos’ and RE2’s management’s current expectations and beliefs, as properly as a number of assumptions about upcoming gatherings. However, there can be no assurance that the functions, benefits or developments determined in these ahead-wanting statements will arise or be reached. Forward-on the lookout statements discuss only as of the date they are designed, and Sarcos is not under any obligation and expressly disclaims any obligation, to update, change or or else revise any ahead-wanting statement, no matter if as a result of new information, long run activities or normally, except as necessary by law.

Audience must thoroughly critique the statements established forth in the reports which Sarcos has filed or will file from time to time with the Securities and Trade Fee (the “SEC”). In addition to factors previously disclosed in Sarcos’ experiences submitted with the SEC and those discovered in this press launch, the following factors, among other individuals, could cause precise final results to vary materially from forward-on the lookout statements or historical overall performance: the danger of litigation or regulatory actions the means of Sarcos to effectively combine RE2’s operations, products and technologies the threat that the predicted added benefits of the transaction might not be recognized or could consider extended than predicted to be understood, like as a end result of the effects of, or difficulties arising from, the integration of the two firms or as a end result of the economy and competitive aspects in the areas where Sarcos and RE2 do organization the influence of the COVID-19 pandemic on Sarcos’ and RE2’s organization Sarcos’ and RE2’s ability to keep crucial staff the dilution brought on by Sarcos’ issuance of added shares of its widespread stock in relationship with the transaction Sarcos’ ability to execute on its company tactic, handle staffing shortages and source chain disruptions, launch its products inside anticipated timelines, produce new products and companies and greatly enhance existing merchandise and expert services capacity to reply quickly to rising technologies traits capability to compete correctly, recruit and keep experienced personnel and regulate growth and expenses general aggressive, economic, political and market circumstances and other threats and uncertainties established forth in the segment entitled “Risk Factors” and “Cautionary Take note Relating to Forward-Looking Statements” in files submitted by Sarcos from time to time with the SEC. The documents filed by Sarcos with the SEC may be obtained cost-free of demand at the SEC’s web-site at www.sec.gov.