A syndicate of public and private investors, including Jeff Bezos’ Bezos Expeditions, K5 Global, and Wellington Management, recently acquired a majority stake in HistoSonics Inc., valuing the company at $2.25 billion.
Why it matters: The sale of the University of Michigan spinout has generated substantial returns for its Michigan-based backers and is noted as one of the largest exits in the state’s recent history, legitimizing Michigan as an innovator across various industries.
The details:
- HistoSonics, founded in 2009, specializes in ultrasonic medical devices designed to destroy or shrink tumors non-invasively.
- The consortium bought about two-thirds of the company, allowing investors the option to cash out or reinvest for a future IPO or acquisition.
- The company has garnered significant investment over the years, including a $102 million Series D round led by Johnson & Johnson in 2024.
- HistoSonics plans to use the additional funding to expand the clinical applications and global reach of its Edison System.
What they’re saying:
- “This will return a significant amount of money to investors in Michigan, which can be reinvested in new innovation,” said Michigan Capital Network CEO and Managing Director Paul D’Amato.
- “The thesis here is that as a private company, we can accelerate the growth of our enterprise value while de-risking additional clinical applications,” said President and CEO Mike Blue.
- “This transaction represents the meaningful work happening at the University of Michigan and throughout the state,” Blue added.
What’s next: HistoSonics will continue to invest in its Ann Arbor facility and plans to extend its focus beyond liver tumors to conditions involving the kidney, pancreas, and prostate. The company aims to revisit the idea of an IPO or strategic acquisition in two to three years.
