EKSO Bionics (Nasdaq: EKSO) has signed a non-binding term sheet to combine its business with Applied Digital— a move that raised questions of what a merger could mean for EKSO’s exoskeleton business.
EKSO’s Dec. 29 announcement said the deal would merge “Applied Digital’s cloud computing business, Applied Digital Cloud, with EKSO, which, once closed, will go forward as ChronoScale Corporation, an accelerated compute platform purpose-built to support artificial intelligence workloads (the ‘proposed transaction’). As enterprise and AI-native demand for GPU-accelerated cloud infrastructure continues to grow rapidly, the proposed transaction is intended to create a focused platform designed to deliver high-performance compute at scale in a capacity-constrained market.”
If the proposed transaction closes, Applied Digital would be the owner of “approximately 97% of the combined company, which will operate under the name ChronoScale,” the announcement added. “The Applied Digital Cloud and EKSO businesses would continue to operate upon consummation of the proposed transaction, and EKSO plans to continue to explore strategic transactions for the possible sale of all or substantially all of EKSO’s current business.”
While EKSO’s Indego Personal lower-limb powered exoskeleton is the company’s best known product in the Complex Rehab Technology (CRT) industry, EKSO also sells the Ekso EVO, an upper-extremity exoskeleton for industrial use, and the Ekso Walker, a standing and walking aid.
“This proposed transaction emanates from our previously announced initiative to evaluate and explore strategic alternatives,” said Scott Davis, EKSO’s CEO. “We approached our review thoughtfully and with an aim to maximize shareholder value, and we believe the proposed transaction has the potential to achieve that goal and that the proposed transaction is in the best interest of EKSO’s stakeholders.”
In the spring of 2024, the Centers for Medicare & Medicaid Services (CMS) announced that Medicare would cover personal exoskeletons, with an established rate of $91,032 for each state.
In February 2025, National Seating & Mobility became the exclusive distributor of the Indego in the CRT industry.
But EKSO continued to struggle financially. Its second-quarter 2025 earnings results, released July 28, 2025, included revenue of $2.1 million. That was down from $5 million for the same period in 2024, though EKSO reported that Indego Personal sales partly offset lower sales of its enterprise health devices.
For Q3 2025, ending Sept. 30, the company reported revenue of $4.2 million, a 2% improvement compared to second-quarter numbers from the previous year.
During that third-quarter earnings announcement on Oct. 28, EKSO said it was considering its options, including acquiring a different business line and/or the sale of part or all of its current business.
