Elron Electronic Industries Ltd. (TASE: ELRN), the high-tech investment arm of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, yesterday announced that it will sell another portfolio company, Sync-Rx Ltd. for $17.25 million to an unnamed foreign company. Elron holds 40% of Sync-Rx through its 50.1% stake Rafael Development Corporation (RDC), and will report a net profit of $7-8 million on the sale. RDC has invested $8.5 million in the company.
Sync-Rx, founded in 2007, develops medical devices designed to improve the simplicity, efficacy and safety of trans-catheter cardiovascular interventions. It has developed a system to improve stabilization of the catheterization system image, an add-on to existing imaging and tools that are commonly used at cardiovascular catheterization labs. The product has received EU CE Mark and US Food and Drug Administration (FDA) clearance. The product is used at six sites in Israel, Europe, and the US. The company is also developing a disposable non-invasive device to improve the precision in stent placement.
In its financial report for 2012, Elron said that Sync-Rx lost $2.1 million in 2011, and is booked at a value of $500,000. Sync-Rx's condition apparently deteriorated during 2012, and Elron booked the company at a negative value at the end of June.
Sync-Rx's buyer will make a down payment of $14.2 million, and will pay the balance subject to milestones. RDC will receive $15.5 million if all the milestones are met.
Elron and RDC apparently believe strongly in Sync-Rx, whose CTO is Dr. Gabi Iddan, the founder of Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN), Elron's flagship portfolio company of the past decade. Sync-Rx chairman Ilan Biran is the chairman of Rafael Advanced Defense Systems Ltd., which owns 49.9% of RDC.
Over the past three years, Elron has sold several portfolio companies for $400 million altogether. Sales include DV3 to Microsoft Corporation (Nasdaq: MSFT), 013 NetVision Ltd. to Elron's direct parent company Discount Investment Corporation (TASE: DISI) and Clal Industries and Investments Ltd. (TASE: CII), Medingo Ltd. to Roche Holding AG (SWX: ROG), Safend Ltd. to Wave Systems Corporation (Nasdaq: WAVX), and Wavion Networks Ltd. to Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR).
Published by Globes [online], Israel business news - www.globes-online.com - on September 20, 2012
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