- A syndicate of public and private investors has acquired a majority stake in the Ann Arbor-based HistoSonics, bringing the company’s valuation to $2.25 billion.
- Michigan Capital Network, which has supported HistoSonics through various capital rounds, is among the investors that will see a significant return on investment.
- The sale marks the largest exit in Michigan since DuoSecurity’s $2.35 billion sale to Cisco in 2018 and Llamasoft’s $1.5 billion sale in 2020.
- HistoSonics develops ultrasonic medical devices aimed at noninvasively destroying or shrinking tumors.
Why it matters: The HistoSonics sale is a significant milestone for venture capital in Michigan, legitimizing the state as an innovator across various industries.
The details:
- The consortium that purchased HistoSonics acquired about two-thirds of the company.
- The unconventional approach allowed current investors to cash out and offered the option to reinvest for a potential IPO or future acquisition.
- HistoSonics aims to extend its non-invasive tumor treatment beyond liver tumors to include kidney, pancreas, and prostate tumors.
- The company plans to accelerate its growth under the new consortium, potentially considering an IPO or strategic acquisition in the next two to three years.
What they’re saying:
- “There were many Michigan investors, including us and the University of Michigan,” said Paul D’Amato, CEO and Managing Director of Michigan Capital Network. “This will return a significant amount of money to investors in Michigan and will fuel new innovations.”
- “This sale allows us to grow our value and delay going public until the time is right,” said Mike Blue, CEO of HistoSonics. “We believe this approach, although unconventional, positions us to better capitalize on our technology’s potential.”
What’s next: HistoSonics will continue to invest in its Ann Arbor facility and expand its Michigan presence. The deal is expected to return millions to Michigan’s startup ecosystem through both private and public investors.