News Column

BRIEF: Ultrasound developer InSightec raises up to $62.5m

June 30, 2014

By Gali Weinreb and Efrat Peretz, Globes, Tel Aviv, Israel

June 30--US investment fund York Capital and others will invest between $50-62.5 million in ultrasound developer InSightec Image Guided Treatment Ltd., which is a subsidiary of Elbit Medical Imaging unit Elbit Medical Technologies Ltd. (TASE: EMTC), at a company value of $200 million before cash.

York Capital itself, the largest shareholder in Elbit Medical Imaging with a 19.7% stake, and led by Jeremy Blanc, will invest at least $37.5 million in the private placement along with a Chinese investor who will receive an option to invest up to $12.5 million. Existing investors GE Healthcare and Medtech Advisors will also have an option to invest.

If GE Healthcare and Medtech do not take up the option then York will increase its investment to $50 million.

Elbit Medical, Insightec's largest shareholder with a 48% stake will not take part in the current round of investment and will see its stake fall to 31-36%.

InSightec has developed focused ultrasound treatment for the removal of bone tumors. The company reportedly had sales $20.6 million in 2013, up 14% from 2012. Losses amounted to $13 million last year, similar to 2012.


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Source: Globes (Tel Aviv)

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