Sightline Medical device co - sold to Stryker for $150m - Globes

March 16, 2006. Sightline Technologies has developed an endoscopic system for early diagnosis of tumors in the digestive tract.

Batya Feldman and Gali Weinreb

Sightline Technologies Ltd., which has developed an endoscopic system for early diagnosis of tumors in the digestive tract, is about to be acquired by US medical device company Stryker Corporation (NYSE:SYK) for $150 million in cash and shares. A deal was closed last night after six months of negotiations. The sale contract is due to be signed early next week. Inventech Investment Co. (TASE: IVTC), an investor in Sightline, notified the Tel Aviv Stock Exchange (TASE) that Stryker will initially pay $50 million in cash for the company, and pay the rest in shares subject to Sightline meeting milestones.

There were rumors in the past about negotiations between Sightline and Stryker, but this time Sightline has been bought. Stryker is due to notify New York Stock Exchange about the deal early next week. Founded in 1994, Sightline has reached the sales stage for its product, with $500,000 in sales in 2004. According to IVC Research, the company has raised $27.5 million to date in four financing rounds. The company?s main investors are Vitalife Life Sciences Venture, Inventech (which owned 10.7% of the company before the sale), Boston Scientific?s (NYSE: BSX) venture capital arm (which owns 15%), Fishman Holdings, Israel Infinity Venture Capital and NGN Capital of the US.

Based at the Matam Science Industry Center in Haifa, Sightline has 30 employees. Its CEO is Avi Levy, who previously served as VP business development at Globscom Ltd. Dan Oz is CTO and Lior Buchman is the CFO.

Michigan-based Stryker develops, markets and distributes medical devices, mostly for orthopedics. The company has 15,000 employees, and posted a profit of $675 million on $4.4 billion in sales in 2005. It has a market cap of $20 billion.