Apollo Endosurgery Acquisition, Valuation, Funding & Investors

Apollo Endosurgery was acquired by Boston Scientific for $615M in November 2022, a 8.1x multiple on $76M of revenue.

Apollo Endosurgery acquisition price

$615M

Acquired by Boston Scientific · Nov 2022

Apollo Endosurgery revenue at acquisition

$76M

Last twelve months · Nov 2022

Apollo Endosurgery revenue multiple at acquisition

8.1x

EV/Revenue · Nov 2022

Cumulative funding Apollo Endosurgery raised

$128M

across 4 funding rounds

Apollo Endosurgery Overview

About Apollo Endosurgery

Apollo Endosurgery is an Austin-based developer of endoscopic devices for gastrointestinal disorders. Founded in 2005 from research by the Apollo Group consortium, the company markets the OverStitch endoscopic suturing system for bariatric revisions and the ORBERA intragastric balloon for obesity management. Products like the X-Tack tacking system reduce procedure times compared to laparoscopic surgery and gain reimbursement from CMS and private payers across the U.S. and Europe.


Founded

2006

HQ

United StatesAustin, TX

Status

Acquired

Customer focus

B2B

Revenue model

Product sales

Revenue

$76M (Nov 2022)

Valuation

$615M (acquired Nov 2022)

Apollo Endosurgery Acquisition

Apollo Endosurgery was acquired by Boston Scientific for $615M on 29 November 2022.

The acquisition price implies a 8.1x revenue multiple on $76M of revenue.

Before the acquisition Apollo Endosurgery had raised $128M across 4 funding rounds.

Boston Scientific announced a definitive agreement on November 29, 2022, to acquire Apollo Endosurgery, Inc., a developer of minimally invasive medical devices for endoluminal surgery and endobariatric procedures, for an enterprise value of approximately $615 million at $10 per share in cash. Apollo Endosurgery's portfolio includes the OverStitch Endoscopic Suturing System, OverStitch Sx, X-Tack Endoscopic HeliX Tacking System, and ORBERA Intragastric Balloon for endoscopic weight management, addressing gastrointestinal defects, complications, and obesity. The acquisition expands Boston Scientific's endoluminal surgery capabilities within its Endoscopy business and marks entry into the endobariatric market. Boston Scientific will fund the purchase with cash and credit lines, expecting immaterial impact to adjusted EPS in 2023 and accretion thereafter. The deal received unanimous Apollo board approval and was expected to close in the first half of 2023, subject to customary conditions. Apollo Endosurgery anticipated $76 million in net sales for 2022, driven by growth in its endoscopic suturing franchise. The $10 per share price represented a 67% premium to the November 28, 2022, closing price.

Apollo Endosurgery acquisition details
AcquirerDateTypePriceEV/Revenue
29 Nov 2022Strategic M&A$615M8.1x

Apollo Endosurgery Funding History

Apollo Endosurgery has raised a total of $128M across 4 funding rounds.

Apollo Endosurgery's first fundraising round was a $5M Series A in July 2013. The most recent completed round was a $22M undisclosed-stage round in November 2015.

Apollo Endosurgery funding rounds

Apollo Endosurgery funding rounds
DateStageInvestorsRaisedDeal Summary
Nov 2015Undisclosed stagePTV Healthcare Capital (lead)$22MApollo Endosurgery, Inc. is an Austin, Texas-based medical device company focused on less-invasive therapies for obesity and gastrointestinal disorders. In December 2013, it acquired the obesity intervention unit from Allergan for up to $110 million. The company had major investors including PTV Healthcare Capital, H.I.G. BioHealth Partners, Remeditex Ventures, Novo A/S, and CPMG Inc. Apollo Endosurgery's consolidated revenue for the calendar year ended December 31, 2015 was approximately $68 million, with surgical product revenue of $47.6 million that year. As of June 30, 2016, the company had approximately $11.6 million in cash and $50 million in long-term debt. In September 2016, Apollo Endosurgery entered a reverse merger agreement with Lpath, Inc., becoming the majority owner with approximately 95.8-95.9% ownership post-merger and concurrent $29 million new equity investment from its major investors, including PTV affiliates. The merged entity, renamed Apollo Endosurgery, went public on Nasdaq under ticker APEN with about 10.7 million shares outstanding after a 1-for-5.5 reverse stock split, trading at $19.38 shortly after. PTV Entities received about 4.2 million shares (adjusted). Total funding across rounds reached $184.07 million with 11 investors before a 2023 acquisition. Surgical revenue declined to $32.5 million in 2016.
Aug 2014Series CUT Horizon Fund (lead)$61MApollo Endosurgery is a medical device company focused on obesity treatment solutions. The company is based in Austin, Texas and acquired the obesity division of Allergan Health, which includes the LAP-BAND system, the world's leading obesity treatment device. This acquisition marked a significant milestone in the company's growth strategy, integrating Allergan's established obesity intervention portfolio into its operations. Apollo Endosurgery closed a $23.7 million financing round in the 2014 timeframe, with involvement from the UT Horizon Fund as an investor. The company was recognized as a commercialization success story by the University of Texas System, highlighting its effective transition from academic research and technology development to a viable commercial enterprise.
Dec 2013Undisclosed stage-$40MApollo Endosurgery, Inc. is a medical device company developing surgical instruments and systems for minimally invasive procedures conducted through natural body orifices, eliminating the need for traditional surgical incisions. The company was incubated by PTV Sciences and received early support through a seed grant from the University of Texas Medical Branch. Its technology includes flexible surgical tools designed for natural orifice transluminal endoscopic surgery (NOTES) with applications in obesity treatment, early-stage cancer intervention, and general surgical procedures. The company's advisory board included prominent figures such as Dr. Anthony Kalloo of Johns Hopkins Medical Center, one of the early pioneers in natural orifice surgery. In December 2013, Apollo Endosurgery reported raising $60.7 million of a planned $63.7 million financing round. By 2016, the company was generating meaningful revenue in its endo-bariatric product segment, with fourth quarter 2016 sales of $7.6 million, up 26% from $6.0 million in the same period of 2015, indicating commercial traction in its core market.
Jul 2013Series A-$5MApollo Endosurgery, a medical device company founded in 2006, develops minimally invasive products for obesity and gastrointestinal treatments, including the Lap-Band system acquired from Allergan in December 2013 for up to $110 million, along with the Orbera intra-gastric balloon. The company also offers the OverStitch Endoscopic Suturing System, OverTube Endoscopic Access System, Tissue Helix, and is developing the Sumo Endoscopic Tissue Access and Resection System. A $50 million debt financing round from Athyrium Capital Management occurred around early 2014 primarily to repay debt from the Lap-Band acquisition. Earlier, the company closed a $23.7 million financing round and reported raising $60.7 million of a planned $63.7 million financing in late 2013.

Who has invested in Apollo Endosurgery?

2 investors have backed Apollo Endosurgery across its funding rounds, including UT Horizon Fund and PTV Healthcare Capital.

Lead investors include PTV Healthcare Capital and UT Horizon Fund.


Apollo Endosurgery Investors

Investors in Apollo Endosurgery by funding rounds participated
InvestorHQRoundsRoleFirst check

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Acquisitions by Apollo Endosurgery

Apollo Endosurgery has acquired 1 company to date.

Last acquisition by Apollo Endosurgery was on September 8th 2016. Apollo Endosurgery acquired LPATH for undisclosed valuation.


Latest Acquisitions by Apollo Endosurgery

LPATH
Description
Lpath is a biopharmaceutical company pioneering monoclonal antibodies targeting bioactive lipids. San Diego-headquartered Lpath utilizes its ImmuneY2 platform to develop therapies neutralizing disease-causing lipids identified through lipidomics research. The firm's patent portfolio covers lipid-neutralizing compounds for conditions involving inflammation, cancer, and fibrosis, positioning it at the forefront of this emerging therapeutic class.
HQ CountryUnited States
HQ City
San Diego, CA
Deal Date8 Sep 2016
Valuationundisclosed
EV/Revenue
EV/EBITDA

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Apollo Endosurgery Competitors

Apollo Endosurgery competitors include listed companies like Oculis Holding and Sunmax Biotechnology, and private ones like Ring Therapeutics, Medrobotics, Expedition Therapeutics and Galvanize Therapeutics.

Public and private companies comparable to Apollo Endosurgery
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Oculis HoldingSwitzerlandSwitzerlandPublicly listed-($121M)$615M283.0x
Ring TherapeuticsUnited StatesUnited StatesPrivate--$591M-
MedroboticsUnited StatesUnited StatesPrivate--$585M-
Expedition TherapeuticsUnited StatesSan Francisco, CAPrivate--$650M-
Galvanize TherapeuticsUnited StatesSan Francisco, CAPrivate--$650M-
Sunmax BiotechnologyTaiwanTaiwanPublicly listed$64M$35M$670M-

Apollo Endosurgery Public Comps

Apollo Endosurgery is no longer listed, but its public comps include Oculis Holding, Nanosonics, AngioDynamics, Curiox Biosystems, Lumibird, SS Innovations, OrthoPediatrics, Delcath Systems, Sunmax Biotechnology and UltraGreen.ai.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Oculis Holding-($121M)-283.0x(2.8x)(3.3x)
Nanosonics$145M$18M3.6x3.5x29.6x31.1x
AngioDynamics$320M($13M)1.8x1.8x(44.5x)34.3x
Curiox Biosystems$4M($17M)156.6x-(33.9x)-
Lumibird$263M$48M2.8x2.7x15.5x12.7x
SS Innovations$42M($7M)15.5x12.0x(92.4x)(71.9x)
OrthoPediatrics$236M($12M)2.6x2.4x(51.6x)28.2x
Delcath Systems$85M$939K5.5x4.7x501.0x28.4x

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Common questions about Apollo Endosurgery

When was Apollo Endosurgery founded?Apollo Endosurgery was founded in 2006.
Where is Apollo Endosurgery headquartered?Apollo Endosurgery is headquartered in Austin, TX, United States.
Is Apollo Endosurgery publicly listed?No, Apollo Endosurgery was acquired by Boston Scientific in November 2022.
Who acquired Apollo Endosurgery?Apollo Endosurgery was acquired by Boston Scientific in November 2022.
How much was Apollo Endosurgery acquired for?Apollo Endosurgery was acquired for $615M in November 2022, a 8.1x revenue multiple.
How much funding has Apollo Endosurgery raised?Apollo Endosurgery has raised $128M across 4 funding rounds.
What was Apollo Endosurgery's last funding round?Apollo Endosurgery's last funding round was a $22M undisclosed-stage round in November 2015, led by PTV Healthcare Capital.
Who are Apollo Endosurgery's investors?Apollo Endosurgery's investors include UT Horizon Fund and PTV Healthcare Capital.
Which companies are comparable to Apollo Endosurgery?Companies comparable to Apollo Endosurgery include Oculis Holding, Ring Therapeutics, Medrobotics, Expedition Therapeutics, Galvanize Therapeutics and Sunmax Biotechnology.
How many companies has Apollo Endosurgery acquired?Apollo Endosurgery has acquired 1 company, including LPATH.

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