EndoChoice Announces Merger with Peer Medical and Secures $43 Million
To expand its line of endoscopy technology, River Cities’ portfolio company EndoChoice, a platform technology company focused on gastrointestinal (GI) endoscopy, will merge with Peer Medical, a privately-held Israeli company developing innovative endoscopy technology. To back the merger and finance projected growth, River Cities participated in a $43 million fundraising round led by Sequoia Capital for EndoChoice.
“River Cities funded EndoChoice in 2008 to build a great platform company within the GI market. The addition of the industry disruptive Peer Medical technology along with the $43 million in capital will enable us to achieve our goal of scaling into the global GI leader,” says River Cities’ Rik Vandevenne, who sits on EndoChoice’s board. “We are pleased to welcome Peer’s management team, investors and Sequoia Capital to the growing EndoChoice family.”
EndoChoice will remain headquartered in Alpharetta, GA, but Peer now becomes the company’s Israeli-based R&D center. Peer has developed a proprietary video system and Full Spectrum Endoscope that greatly expands the view during endoscopy and colonoscopy allowing gastroenterologists to better detect more cancerous polyps and abnormal lesions.
“It is well known that we are missing 25 to 40 percent of polyps during colonoscopy. Conventional scopes are comparable to driving a car with without side windows. Can you imagine all the things we are missing? The Full Spectrum Endoscope provides the side windows for a full view and it makes a tremendous difference. This technology will save lives,” says Mark Gilreath, founder and CEO of EndoChoice. “We are very impressed with the R&D team in Israel. Their capabilities and insights will fuel the future growth of EndoChoice for many years to come as we continue to build a great platform company.”