American conservative billionaires Charles and David Koch (Koch Brothers) are making their first investment in Israel. The brothers are leading between $75 million – $150 million round of investment in Biomed InSightec through Koch Deterpetiv Technologies.
The investment round gives the company a value of $460 million, before the money. The investment details were reported to the Tel Aviv Stock Exchange by Elbit Medical, which holds 31% of InSightec.
InSightec develops and manufactures therapeutic medical systems based on technology that combines the use of a focused ultrasound beam and magnetic resonance imaging (MRI) to perform non-invasive treatments in the human body.
InSightec products enable the destruction of tissue deep in the body, such as fibroids in the womb, or treatment of a movement disorder known as “initial shaking”, without cutting or damaging other tissues and controlling the results of treatment.
InSightec’s revenues in the first half of 2017 amounted to $10.9 million, and it recorded an operating loss of $ 19 million.
As part of the investment round, investors, including existing shareholders of InSightec, were granted the right to invest an additional $75 million over the next two months. Upon completion of the investment transaction, Elbit will hold 26% of InSightec’s issued share capital (22% on a fully diluted basis), and if the maximum amount of $150 million is invested, Elbit’s share will decrease to 22% or 19% on a fully diluted basis.
The Koch Brothers own the Koch Industries, the second largest US conglomerate dealing in oil, gas, and commodities, and its center in Wichita, Kansas.
But their political activism was much more written than their business. The brothers are known for their support of the Republican Party. Two weeks ago, it was announced that their property company had backed a $1.8 billion deal to acquire the media group Time Media by Meredith Corp. The brothers financed 35% of the deal.