VC group sells Israeli surgical firm for $50m

US-based Stryker has paid a venture capital consortium led by Israel’s Vitalife Life Science Ventures $50m for Sightline Technologies, a surgical products manufacturer.

Israeli venture capital firm Vitalife Life Science Ventures has exited its investment in Sightline Technologies, a developer of endoscopic systems for the early diagnosis of tumours in the digestive tract.
 
Vitalife, Inventech, Fishman Holdings, Israel Infinity Venture Capital and NGN Capital sold their stake in Sightline to US-based medical products maker Stryker for $50 million (€41 million) in cash. Stryker has also agreed to make milestone payments of up to an additional $90 million upon the achievement of operational and financial targets.
 
Michigan-based Stryker has a market cap of $20 billion and develops, markets and distributes medical devices, mainly for orthodopedics.
 
Avi Ludomirsky, founder and partner at Vitalife and current chairman of Sightline, told PEO the firm sold its entire 12 percent stake in Sightline, and the transaction represented an exit for all of the other investors in the business. Sightline has, Ludomirsky confirmed, received approximately $27.5 million to date in four financing rounds.
 
Ludomirsky said Vitalife invested in Sightline through its $51 million debut fund, Vitalife VC. He said the vehicle is now fully invested in 17 portfolio companies and that Vitalife is likely to begin raising a larger fund of “at least $100 million” later this year. “We haven’t officially begun fundraising as yet, but there has already been some interest, so we expect to at least see a first closing this year,” he added.
 
Founded in 1994, Haifa-based Sightline’s products include implants used in joint replacement, trauma, spinal surgeries, neurologic, ear, noise and throat and intervential pain equipment. The company reported sales of $500,000 in 2004.