Venus Concept Inc. (VERO) has signed a definitive agreement to sell its Venus Hair business to Meta Healthcare Group - MHG Co. Ltd for $20 million in cash, subject to standard working capital adjustments.
The transaction, aimed at strengthening Venus Concept's balance sheet and supporting strategic growth, includes the transfer of ARTAS and NeoGraft technologies and is expected to close in Q3 2025.
CEO Rajiv De Silva stated that this move is part of a broader strategy to optimize shareholder value. He noted that Meta Healthcare is well-suited to grow the Venus Hair segment, especially in hair transplant markets. The divestiture allows Venus Concept to concentrate on its core global medical aesthetics business, with the expectation of improving revenue, reducing expenses, and achieving long-term profitability.
Meta Healthcare's CEO Soohyun Kim expressed enthusiasm about adding Venus Hair to its portfolio of medical devices, pharmaceuticals, and cosmetics. He emphasized the strength of ARTAS and NeoGraft in key global markets and highlighted the opportunity to enhance MHG's R&D and manufacturing capabilities.
The agreement includes the sale of Meta Robotics LLC, a newly formed subsidiary of Venus Concept housing the Venus Hair assets, including related equipment, IP, and operations. Meta Healthcare will grant Venus Concept a perpetual, royalty-free global license to certain transferred patents. It will also assume the San Jose R&D and manufacturing facility and production rights for NeoGraft.
In FY 2024, the Venus Hair business generated $12.5 million in revenue and used $6.7 million in cash for operations. Venus Concept will continue to explore strategic alternatives to boost shareholder value. Canaccord Genuity and Dorsey & Whitney LLP advised Venus Concept, while Fredrikson & Byron P.A. and Bae, Kim & Lee LLC advised Meta Healthcare.
VERO is currently trading at $3.1196 or 30.5272% higher on the Nasdaq Capital Market.
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