Viola Injects $28.4 Million for Itamar Medical; Becomes the Largest Shareholder

30 August, 2015

"This investment will help position Itamar Medical as a leading player in the cardiovascular diagnosis market"

“This investment will help position Itamar Medical as a leading player in the cardiovascular diagnosis market”

WatchPAT in action. Source:  Itamar Medical
WatchPAT in action. Source: Itamar Medical

Viola Private Equity will invest up to $28.4 million in Itamar Medical from Caesarea Industrial Park, Israel. Through this deal, Viola will become the largest shareholder of the company. As part of the investment, Jonathan Kolber, General Partner at Viola and formerly the CEO of Koor Industries, and Sami Totah, General Partner at Viola and formerly the COO of Amdocs, will join Itamar Medical’s Board of Directors.

Itamar Medical develops, manufactures and markets non-invasive medical devices based on a unique technology for the diagnosis of cardiovascular diseases and sleep apnea, based on its proprietary platform technology, the PAT (Peripheral Arterial Tone) signal. The company currently markets the WatchPAT home sleep test for respiratory sleep disorder diagnosis, and the EndoPAT, the only device approved by the U.S. FDA for testing endothelial (arterial) function and assessing the risk of coronary artery disease and other cardiovascular diseases.

The company has signed several global strategic agreements with players such as Medtronic (in the US), Viable Medical Investment (in China), Philips Respironics and Nihon Kohden in Japan.

“It was extremely important for us to enable our existing shareholders to take part in this important investment round and hence we have reached an agreement with the fund that enables issuing rights in parallel,” said Gilad Glick, CEO of Itamar Medical. “This investment will help position Itamar Medical as a leading player in the cardiovascular diagnosis market.”

According to the investment agreement, Itamar Medical will issue shares to Viola at the price of NIS 1.449 per share for consideration of $24.1 million. In addition, Itamar Medical will issue to Viola non-tradable warrants for the acquisition of up to 50% of issued shares for an exercise price of NIS 1.642 to NIS 1.745 per share.

In parallel, Itamar Medical announced that it will initiate a rights offering to existing shareholders to invest an additional $5.9 million under the same conditions of Viol’s investment. Viola Private Equity committed to increase its investment by up to $4.3 million, in case of unexercised rights, reaching a total investment of up to $28.4 million.

Following that, Itamar Medical reports that the Company has received from its major shareholders – Medtronic, Dr. Giora Yaron and Martin Gerstel – a notification regarding their intent to convert their existing $1.6 million shareholders loan to equity by participating in the rights offering, bringing the total investment in the Company to $30 million.

Viola Private Equity and the major shareholders agreed that all of their shares in the company will be locked-up for a period of 18 months. Viola is managed by four General Partners: Harel Beit-On, Jonathan Kolber, Sami Totah and Ayal Shiran. The fund manages over $410 million. Among its recent exits: Mobile Access, Amiad Water Systems, Matomy and Orad.

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