Please ensure Javascript is enabled for purposes of website accessibility

Intuitive Surgical Buys Shape-Sensing Technology From Luna Innovations

By Eric Volkman - Jan 22, 2014 at 6:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Intuitive Surgical will pay $12 million upfront for the Luna Innovations technology, as well as up to an additional $18 million in milestone payments.

Intuitive Surgical (ISRG -0.49%) will soon add a new asset to its portfolio. The company has signed a deal to buy the shape-sensing technology for medical applications currently the property of Luna Innovations, the latter firm revealed in a press release. The base price is $12 million, which is to be paid to Luna in two tranches. Luna could also receive up to an additional $18 million if certain technical and commercial milestones are reached.

For its money, Intuitive Surgical will receive not only the technology, but also its related patents. Additionally, it will hire an unspecified number of Luna engineering employees working on those assets.

Intuitive Surgical is currently the target of a buyout offer by "mini-tender" specialist TRC Capital, which has bid $405 per share for a small block of stock in the company. That number is well below the most recent closing market price of $439.12; not surprisingly, Intuitive Surgical has recommended that its shareholders not accept the offer.

So-called "mini" offers are solicitations for small blocks of stock. Typically, they target positions under 5% of outstanding shares and as such are not subject to some of the disclosure rules mandated by larger bids.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Intuitive Surgical. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Intuitive Surgical, Inc. Stock Quote
Intuitive Surgical, Inc.
ISRG
$239.13 (-0.49%) $-1.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
377%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/08/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.