Luna To Sell Shape-sensing Tech For Medical Applications To Intuitive Surgical

(RTTNews) - Luna Innovations Inc. (LUNA) announced that it agreed to sell its shape-sensing technology for medical applications to Intuitive Surgical Inc. (ISRG).

The terms of the deal include Luna receiving $12 million upfront in two tranches and up to an additional $18 million upon certain technical milestones and commercial measures.

Intuitive will acquire Luna's fiber optic shape-sensing and localization technology, including related patents, and hire a number of engineering employees formerly utilized in Luna's medical shape-sensing business.

Luna Innovations said that the sale will enable it to focus on the growth potential of its fiber-optic sensing business while significantly strengthening the company's balance sheet. The sale contains provisions that maintain Luna's ability to service its existing agreements and for the continued use and exploration of opportunities outside the medical industry.