IDB Holding Corp. Ltd. (TASE:IDBH) technology investment arm Elron Electronic Industries (Nasdaq: ELRN; TASE: ELRN) has completed the financial moves that it recently announced it would be carrying out in connection with its subsidiary Galil Medical Ltd.. The company announced this morning that Galil Medical completed a $52 million financing round led by Thomas, McNerney & Partners and The Vertical Group and joined by Investor Growth Capital.
Galil Medical was founded in 1997 and it develops, manufactures and markets a cryotherapy platform incorporating powerful freezing technology and proprietary needle design for minimally invasive treatments for various clinical applications, including prostate and kidney cancer. Following the transaction, Elron will hold approximately 12% while Rafael Development Corporation will hold 17% of Galil Medical's outstanding shares.
In addition, Elron also announced the completion of the sale of Galil Medical's 25% interest in Oncura, Inc. ("Oncura") to Oncura's 75% shareholder, GE Champion Services while Galil Medical acquired Oncura's urology related cryotherapy business. Following the transaction, the cryotherapy business is now solely owned and operated by Galil Medical.
Elron said it may record a gain on the aforementioned deal of around $2-4 million in the fourth quarter of 2006. Under US GAAP and based on a preliminary analysis, Elron estimated that it would record a loss in the fourth quarter of 2006 of between $1 million and $3 million with regard to this transaction.
Elron president and CEO Doron Birger said, “The acquisition of the urology cryotherapy business with annual revenue in excess of $20 million and the significant financing round completed by Galil Medical are major stepping stones to becoming a leader in its field.”
Published by Globes [online], Israel business news - www.globes.co.il - on December 10, 2006
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