GE invests in ultrasound therapy

January 9, 2002

No sooner did GE complete one investment than it made another, albeit smaller, one. GE Medical Systems has taken an equity stake in InSightec, a subsidiary of Elbit Medical

No sooner did GE complete one investment than it made another, albeit smaller, one. GE Medical Systems has taken an equity stake in InSightec, a subsidiary of Elbit Medical Imaging. InSightec is developing an MRI-guided, high-intensity, focused ultrasound system as a possible replacement for some surgical procedures. Per the agreement, GEMS will invest $10 million in a combination of cash and equipment for 11.8% of InSightec's shares. GEMS will also convert its previous 5% holdings in InSightec into an additional 5% holding and receive warrants for the purchase of another 5% of InSightec shares for $3 million, exercisable for a period of three years.