GE Healthcare Invests $27.5 M in Insightec
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.