GE Healthcare Invests $27.5 M in Insightec

Posted in: Articles, biotechnology, financial, medical device  |  May 29, 2012 at 9:14 am
Comments are closed
Elbit Medical Technologies Ltd. (TASE: EMTC) announced that its subsidiary InSightec Image Guided Treatment Ltd. has signed a memorandum of understanding with GE Healthcare. Under the agreement, GE Healthcare will invest $27.5 million in the company. Insightec develops MRI-guided focused ultrasound devices for the treatment of uterine fibroids, tumors, and neurological disorders, such as essential tremor‚ neuropathic pain and Parkinson’s disease.

GE Healthcare invested $13.5 million in Insightec in February and currently holds an 18% stake in the company while Elbit Medical has a 64.3% stake. The latest investment will be in the form of a loan convertible to shares, in two tranches, according to a company valuation of $102.5 million after money. At the end of the process, Elbit will reduce its stake in Insightec to 50%, while GE Healthcare will raise its stake to 40%. Elbit will lose its controlling stake but remain the largest shareholder.

Written by

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Etiam libero diam, elementum eget porttitor at, tincidunt at nulla.