Technology firm Elbit has announced that GE Healthcare will invest $31 million in Elbit's InSightec in exchange for an equity stake in the firm.
The deal gives GE the right to distribute and market InSightec's products, along with product development for a limited period of time to exclusively fit GE's MRI scanners. The agreement also provides for mutual technical assistance and grant of licenses for InSightec's technology, Elbit said.
Completion of the transaction, which is subject to regulatory approvals and additional agreements, will result in Elbit Medical's holdings in InSightec being reduced to approximately 48%, and 41% on a fully diluted basis. For a time after the transaction is completed, GE will have the right to purchase all of InSightec's series C preferred shares, Elbit said.
