Danish co Ambu buys ETView for $16m

Todd Dollinger Photo Rafi Kotz
Todd Dollinger Photo Rafi Kotz

The Israeli company has developed a device for inserting respirator tubes into the breathing passages.

Medical devices company ETView Medical Ltd. (TASE: ETVW) today announced the closing of a deal for the company's acquisition for $16 million: $12.3 million in cash and the rest in debt. The acquiring company is Ambu A/S, a medium-sized medical devices company listed on the Danish stock exchange at a $1.8 billion market cap.

The shareholders in the company can exchange their shares for cash at NIS 2.61 per share. The deal closely corresponds to the current share price of NIS 2.62. It was reported that closing of the deal in late August was likely.

Certain company officeholders will be entitled to bonuses upon completion of the merger (the bonus amounts were not stated), and directors insurance will be purchased for all company officeholders and directors. One of the conditions for the deal is that the company's debt, for which the acquiring company will assume responsibility, not exceed $3.62 million when the deal is completed.

The main shareholders in ETView are Richard Zitelman (18.8%). Trendlines Ltd. (SI:42T) (15.5%), the Trendlines Misgav incubator (10%), Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) (10%), and Daniel Magen (7.7%). Migdal invested at NIS 3.40 a share. Trendlines is the franchise holder for the incubator in which the company grew.

ETView has developed a device that improves the way respirator tubes are inserted into the breathing passages. The company's respirator tubes contain a camera that makes it possible to view the lung when the tube is inserted in order to verify that the respirator tube is left in the right place. ETView specializes in selective respiration of one lung.

ETView's chairman is Todd Dolinger and its CEO is William Edelman. The company was merged into a stock exchange shell in 2010, and its start on the Tel Aviv Stock Exchange (TASE) was a fiasco. The company share has lost 98% of its value as of today, and most of the value was lost in the first year after the merger.

Published by Globes [online], Israel business news - www.globes-online.com - on June 22, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Todd Dollinger Photo Rafi Kotz
Todd Dollinger Photo Rafi Kotz
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