Magic Leap in Talks to Raise Money From ‘Major Health Care Company,’ CEO Tells Staff

Magic Leap is in talks to secure funding from a health care company, according to emails CEO Rony Abovitz sent to staff. The capital could save the highly valued startup from making further cuts to its already diminished workforce.

Abovitz said last week that Magic Leap signed a term sheet and was in advanced negotiations with “a major health care company that will drive our enterprise strategy forward,” while also fielding “ongoing interest from many players in health care.” He said the company would provide the company’s augmented reality headsets to help surgeons, although his emails didn’t name any companies.

One company whose name has circulated within Magic Leap as a possible investor is Zimmer Biomet, according to people familiar with the matter. The Warsaw, Indiana, company, which has a market cap of $24 billion, develops medical devices to help treat bone and joint injuries.