Medical devices giant Medtronic Inc. (NYSE: MDT) has acquired Israeli start-up Odin Medical Technologies Ltd., a developer of MRI systems for brain surgery, for $9 million. $30 million was invested in Odin since it was founded in 1995. Medtronic led Odin’s third financing round, in which it raised $4 million at a company value of $30-40 million.
Medtronic was responsible for marketing Odin’s product, but sales were not as successful as had been hoped. The net price tag for Odin was reached after deducting the company’s debts to the Office of the Chief Scientist and to Medtronic; the gross price was $20 million.
A group of entrepreneurs, including CTO Dr. Ehud Katznelson, COO Yuval Zuk, Dr. Amit Goffer, Shmuel Pereg and Meir Matana, and founded the company. Investors included Israeli funds Concord Ventures, Pitango Venture Capital, Star Ventures, Walden Israel, and Gildor Investments, the Office of the Chief Scientist, and Charles River Ventures of the US.
Sales of Odin’s MRI system began in 2003, when it signed a distribution agreement with Medtronic Surgical Navigation Technologies (SNT), at the same time that Medtronic invested in the company.
Published by Globes [online], Israel business news - www.globes.co.il - on August 24, 2006
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