NEW YORK (AP) – Israeli technology holding company Elron Electronic Industries Ltd. said Tuesday its group company Medingo Ltd. completed a financing round of about $27 million, jointly led by Elron and venture-capital fund Radius Ventures.
Elron said it will invest between $13 million and $22 million, and Radius will invest $5 million.
Medingo, which is wholly owned by Elron's subsidiary RDC Rafael Development Corp. Ltd., is developing products specifically for the needs of insulin-dependent diabetic patients.
Medingo was established two years ago within RDC and is finishing its first significant round of financing at a post-money valuation of about $82 million, according to Elron.
“Elron's significant investment in Medingo indicates our confidence in its technology and management and, together with our new partner Radius, we believe that Medingo will become one of the leading players in its field,” said Elron President and Chief Executive Doron Birger.
After the transaction, Elron will hold, directly and indirectly through RDC, between 49 percent and 62 percent of Medingo's outstanding shares, depending on the amount of its investment.
Shares of Elron fell 42 cents, or 3.7 percent, to $10.90 in midday trading.