Ottobock to acquire fellow exoskeleton maker suitX
Exoskeleton developers Ottobock and suitX are joining forces. Ottobock is acquiring suitX so that their exoskeleton portfolios become one. The terms of the deal are not disclosed, but Ottobock is acquiring 100% of suitX's shares.
Ottobock is a leading developer of prosthetics, orthotics and exoskeletons. The Paexo exoskeleton line includes solutions for the back, wrists, thumb and neck. suitX's professional exoskeleton portfolio includes backX, legX and shoulderX to reduce the risk of injury among workers.
Phoenix is a lightweight exoskeleton approved by the U.S. Food and Drug Administration (FDA) that allows people with spinal cord injuries to stand upright and walk. suitX is also developing a new line of exoskeletons to support users during recreational activities.
suitX is a spin-off of the Robotics and Human Engineering Laboratory at the University of California, Berkeley. The company was founded in 2012 by Dr. Homayoun Kazerooni. Before launching suitX in 2005, he founded exoskeleton maker Ekso Bionics. Ekso went public in 2014.
suitX will become part of Ottobock Bionic Exoskeletons, the company's professional exoskeleton division. The global business of Ottobock Bionic Exoskeletons, which operates under the Paexo brand, will continue to be managed from Germany. suitX founder and former CEO Homayoun Kazerooni will remain with the company as chief scientist.
“Together with suitX, Ottobock's exoskeleton company Paexo will become the leading global provider of exoskeletons for manufacturing, logistics, maintenance and retail. Working together, we will create significant socioeconomic benefits by improving occupational health for employees and reducing sick-leave costs and treatment expenses for companies and healthcare systems. This deal expands our presence and network in North America and comes at the right time, as we expect the professional exoskeleton solutions market to grow dynamically in the coming years”
Homayoun Kazerooni said: "This step is a success not only for suitX, but also for the University of California, Berkeley, where entrepreneurship is encouraged to the greatest extent for the benefit of people around the world. I look forward to presenting our technologies to communities around the world together with Ottobock to improve quality of life. That is the whole point, and I am very happy."
“Our exoskeletons significantly ease the physical burden on workers at many industrial facilities and in logistics. The shortage of skilled labor, an aging workforce, the growing importance of employee safety and injury prevention, and a growing understanding of the cost of injuries will drive dynamic market growth. We expect recent technological advances in weight, ergonomics and functionality, combined with growing affordability, to boost adoption across the industry”
The professional exoskeleton market is expected to grow to several hundred million dollars by 2025. Work-related injuries, especially musculoskeletal disorders (MSDs), create significant costs for companies and are the leading cause of missed work. In the US alone, the estimated annual cost is at least $45 billion.
Exoskeletons for able-bodied users address MSDs by reducing the strain on workers, which by some estimates cuts sick days by 25%. Given this, investments in exoskeletons pay off within the first 12 months after deployment, with a positive return on investment within two years.
Using exoskeletons in industrial work and logistics can help increase productivity, make manual work more attractive and safer, and thus counter the growing shortage of skilled workers in these industries. Moreover, the expected reduction in MSDs benefits not only the health of individual workers but also reduces the cost burden on employers and healthcare systems.
An exoskeleton is worn on the user's body and works in tandem with it. It augments, strengthens or restores human capability and helps increase productivity while preventing musculoskeletal disorders. Exoskeletons can support workers in several use cases (for example, shoulder/neck, back, arms/hands, legs) and across various industries (for example, automotive manufacturing, industry, maintenance, logistics).
"Enjoying life and being independent day after day — many of us take this for granted, and it should be possible for people with limited mobility too. Our products help people regain mobility. Finding the right solution for individual needs is an important and interesting challenge for our team of more than 8,000 employees worldwide. And together we are solving this challenge," Ottobock said.
