GE Medical Systems and Siemens Medical Systems have each acquired 6% of Imarad Imaging Systems.
The investment is strategic. "Globes" has learned that company value for the investment was $20 million, and that each company paid slightly over $1 million. The investment is linked to a distribution agreement for the company's products. "Globes" has also learned that the company is planning its first US issue for the near future.
The joint market shares of the two companies in the medical imaging systems market reaches 50%. According to the new distribution agreement, the two companies will distribute Imarad's products. The two companies compete with each other, and Imarad said that it negotiated separately with each of the two companies.
Imarad's product is a nuclear medical detector, based on proprietary solid state technology, for medical uses. The technology will lower the cost of medical tests, such as MRI and CT scans, which are used in hospitals and imaging institutes. Other distributors of the company's products include Toshiba, SMV, and GEC Marconi.
Imarad Imaging Systems was founded in 1995 by Dr. Uri Elhanani, Alex Tzigelman, and CEO Shimon Klier. The company is based in Rehovot, and has financed its operations until now from its own $10 investment.
Published by Israel's Business Arena on June 6, 2000