Steel Partners Challenges InMode Leadership With $963 Million Bid

The unsolicited bid is 55 cents higher than the $16.20-per-share offer submitted last month by MN Business Strategy. Steel Partners, which has previously voiced opposition to the CEO-led buyout alongside DOMA Perpetual Capital Management, structured its proposal to be free of external financing conditions. It also includes an option for current investors to roll over up to 40% of their equity into the restructured firm.

Steel Partners took aim at Mizrahy’s leadership in its letter to the board, arguing he is no longer fit to guide the company following a period of share price erosion. The firm explicitly noted that its bid does not require the cooperation of InMode’s manufacturer, Medimor, or its U.K. distributor, Wigmore Medical—key entities represented within the rival bidder's group.

Independent directors on InMode’s special committee face a deadline to respond to the offer by the close of markets in New York this Monday. InMode shares closed recently at $14.46, reflecting a 5.1% decline year-to-date despite a slight recovery over the last quarter.