Performance technology company Hyperice announced Thursday it has acquired NormaTec, the creator of a popular recovery system used by professional athletes.
Terms of the deal were not immediately made available, but Hyperice CEO Jim Huether told CNBC with the acquisition, he expects the company's gross revenue to "more than double within 18 months." Hyperice said it grossed in excess of $100 million in 2019.
"Through Hyperice's existing manufacturing competencies and economies of scale, we expect the gross margin on the NormaTec line to increase significantly," Huether told CNBC via email. "Through this acquisition, we also expect the NormaTec line to grow in international markets within 18 months."
In a statement announcing the deal, NormaTec's CEO, Gilad Jacobs, will transition to a new role as Hyperice's Chief Innovation Officer. The company said it plans to alter the name on current NormaTec products to "NormaTec by Hyperice."
Hyperice was founded in 2010 by Anthony Katz, who was able to lure star athletes, including former Olympic ski champion Lindsey Vonn and Detroit Pistons forward Blake Griffin, who are also shareholders. Hyperice did not reveal how much of the company Vonn and Griffin own or provide names of other investors.
According to Inc magazine., San Antonio Spurs forward Rudy Gay, and former Pittsburgh Steelers safety Troy Polamalu were also early investors in Hyperice.
Though NormaTec's leg recovery system, "The PULSE," is commonly used by other U.S. sports leagues, superstars throughout the National Basketball Association are frequently seen using the system before and after games.
Players like Brooklyn Nets forward Kevin Durant, Golden State Warriors guard Steph Curry, and Los Angeles Lakers forward LeBron James use NormaTec. The compression system helps players with muscle tissue recovery, assist in preventing blood clots in legs, tightness and soreness. The system is listed on Amazon for which for more than $1,200. On NormaTec's website, a newer version of the system sells for more than $2,000.
In 2014, James told Bleacher Report he started using the device, and "my legs started feeling better and I didn't stop. I started taking it on the road and everything. I mean, I think it's awesome."
Hyperice's acquisition allows the company to better position itself to take advantage of a sports technology market that could be worth more than $30 billion by 2024, according to TechCrunch.
Correction: An earlier version misstated Hyperice's projected gross revenue of $1 billion within 18 months. The company said it will double its 2019 revenue which was in excess of $100 million.