Full Breakdown
Steel Partners Proposes Acquisition of InMode
1/29/2026, 9:19:48 PM
Acquisition Proposal Details
Investment firm Steel Partners has made a formal offer to acquire a 51% stake in InMode, a medical technology company based in Israel, at a price of $18 per share. This offer represents a 29% premium over InMode's closing share price prior to the speculation about the transaction, leading to an almost 8% increase in InMode's US-listed shares during after-hours trading. Steel Partners currently holds approximately 1.3% of InMode's outstanding stock and plans to finance the acquisition through a combination of available cash and borrowings from its existing credit facility.
Rationale Behind the Offer
Steel Partners has expressed concerns regarding InMode's performance, stating that the company has "underperformed its true potential" and has delivered "abysmal" total shareholder returns over various periods. The investment firm believes that there is significant opportunity to enhance InMode's sales through improved commercial execution and selective acquisitions, while also maintaining cost discipline. In a letter addressed to InMode's shareholders, Steel Partners indicated that it had made several attempts to engage with InMode's leadership regarding the proposal but was met with resistance, prompting the firm to take its offer directly to the investors.
Official Statements & Responses
Steel Partners emphasized its commitment to proceed with the acquisition without a financing contingency and expressed readiness to sign a non-disclosure agreement to facilitate discussions with InMode's management. The firm has indicated that if InMode's board and management do not engage with the proposal, it may take its offer directly to the shareholders.
Criticism & Opposition
While Steel Partners has positioned its offer as beneficial for InMode's future, there has been no immediate response from InMode's leadership regarding the proposal. Critics may argue that unsolicited acquisition offers can disrupt existing company strategies and may not always align with the long-term interests of all shareholders.
What's Next
The outcome of Steel Partners' proposal remains uncertain as InMode's management has yet to respond. The investment firm is prepared to escalate its efforts to engage with shareholders if necessary, which could lead to a significant shift in InMode's governance and operational strategy.
Verbatim Quotes
- “underperformed its true potential,” — Steel Partners