HistoSonics, which began in 2009 as a startup at the University of Michigan in Ann Arbor, has announced a management-led majority stake acquisition by a syndicate of globally recognized private and public investors, including K5 Global, Bezos Expeditions, Wellington Management, and other new and existing investors.
The transaction values HistoSonics at approximately $2.25 billion, and positions the company for accelerated growth of the Edison System across new clinical indications and global markets.
The company developed the Edison Histotripsy System and novel histotripsy therapy platform to destroy liver tumors.
HistoSonics has now achieved unicorn status — a valuation of $1 billion or more — placing it with other unicorns developed in Michigan like OneStream in Birmingham, Coupa (formerly Llamasoft) in Ann Arbor, StockX in Detroit, and Duo Security in Ann Arbor.
According to Michigan Economic Development Corp., the science of histotripsy was developed by scientists at U-M as a potential alternative to surgical procedures, and was backed early by the state’s innovation ecosystem, including Michigan-based investors, VC funds, and support through university programs like the Technology Transfer Talent Network.
“Ecosystem investment matters, and returns take time; this is what long-term deep tech success looks like,” says Ben Marchionna, chief innovation ecosystem officer at Michigan Economic Development Corp. “This Michigan-built technology is already helping patients who had no other options, and will continue to redefine treatment.”
HistoSonics will stay in Ann arbor continue to be led by Mike Blue, president and CEO, and his executive team. Blue also will assume the role of board chairman upon closing.
The new group of partner “backs category-defining companies that transform entire industries,” says Blue. “Their support gives us the firepower to accelerate our momentum, expand into new clinical indications, and reach even more patients around the world who urgently need our breakthrough therapy.”
HistoSonics plans to expand beyond its initial focus on liver tumors to kidney, pancreas, and prostate indications, with a long-term vision of histotripsy being used across a wide range of clinical applications throughout the body, treating both benign and malignant conditions.
“What stood out with HistoSonics wasn’t just the technology, it was the speed and clarity with which the team turned a breakthrough into real clinical traction,” says Bryan Baum, co-founder and managing partner at K5 Global.
“Hospitals are continuing to order systems, patient demand is surging, and the clinical results speak for themselves. We partnered with HistoSonics because this is one of those rare moments where the science, the execution, and the opportunity all align, and we are here to ensure it reaches every hospital in the world.”
HistoSonics received FDA De Novo clearance in October 2023, and uses non-invasive focused ultrasound energy to mechanically destroy and liquify targeted tissue and tumors at a sub-cellular level and without the invasiveness or toxicity of traditional procedures.
To date, more than 2,000 patients have been treated by the Edison system at 50-plus U.S. medical centers, with another 50 planned system installations by year-end.
Supported by extensive preclinical and clinical research across multiple organ systems, including liver, kidney, pancreas, prostate and others, the company is currently enrolling patients in clinical trials for liver tumors, kidney tumors (HOPE4KIDNEY Trial NCT05820087) and pancreas tumors (GANNON Trial NCT06282809), with plans to start others in the near future.
Additional participants in the transaction include Alpha JWC Ventures, alongside existing investors Alpha Wave Ventures, Venture Investors Health Fund, Lumira Ventures, Hatteras Venture Partners, Early Stage Partners, Amzak Health, HealthQuest Capital, Yonjin Venture, the State of Wisconsin Investment Board, the State of Michigan Retirement System, Johnson & Johnson through its corporate venture capital organization, Johnson & Johnson — JJDC Inc. (JJDC), and others.
Citi served as financial advisor and Fox Rothschild served as legal advisor to HistoSonics.
Morgan Stanley & Co. served as financial advisor and Cooley, with assistance from Orrick, served as legal advisors to the investment syndicate. Wilson Sonsini Goodrich & Rosati served as legal advisor to Histosonics’ existing major shareholders.
HistoSonics also has offices in Minneapolis. For more information on the Edison Histotripsy System visit histosonics.com.
For patient-related information, visit myhistotripsy.com.
