A Medical Device Daily
Elron Electronic Industries (Tel Aviv, Israel) reported that a non-binding indication of interest of a third party regarding a potential acquisition of Medingo (Tampa, Florida), an Elron subsidiary, has been received.
The indication relates to an acquisition of Medingo's entire share capital for a cash consideration ranging from $150 million to $170 million and a contingent additional cash consideration conditional upon one or more milestone(s) to be mutually agreed, which may bring total consideration up to between $185 million and $213 million. The transaction would be subject mainly to the parties entering into a mutually agreed definitive agreement; satisfactory completion of a full due diligence by the third party; and the parties obtaining applicable corporate and regulatory approvals.
In the event of consummation of such transaction, Elron would be expected to record a net gain initially estimated at this stage to be between nearly $54 million and nearly $80 million. This gain includes Elron's share in the net gain expected to be recorded by RDC Rafael Development (Tel Aviv) through which Elron owns part of its holding in Medingo.
There is no assurance of the occurrence, timing or terms of any such transaction.
Medingo is 92% held by Elron (including 83% held by RDC, Elron's 50.1% subsidiary). Medingo is engaged in the development and commercialization of a miniature insulin dispensing patch pump for the needs of insulin-dependent diabetic patients.