InSightec Image Guided Treatment, a subsidiary of Elbit Medical Technologies, has signed a memorandum of understanding (MOU) with GE Healthcare.
Under the MOU, GE Healthcare will invest $27.5m in Insightec, reports globes.co.il.
Insightec develops MRI-guided focused ultrasound devices to treat tumors, uterine fibroids as well as neurological disorders such as essential tremor‚ neuropathic pain and Parkinson’s disease.
Earlier in February 2012, GE Healthcare invested $13.5m in Insightec and currently holds 18% stake in the company, while Elbit Medical holds 64.3%.
According to Insightec’s valuation of $102.5m after money, the latest investment will be in the form of a loan convertible to shares in two tranches.
At the end of the process, Elbit will reduce its stake to 50% in Insightec, while GE Healthcare will raise its stake to 40%.