Sarine Technologies, a manufacturer of diamond processing and grading equipment, has purchased a 33.02% stake in Israeli tech company Kitov.ai for $4.09 million cash.
In a statement, Sarine said the investment will let it diversify its business given “the current challenges the diamond jewelry industry faces.”
Kitov is “engaged in technologies similar to those employed by Sarine (optical inspection, AI, software, etc.), thus ‘speaking’ the same language,” according to the statement, which noted that Kitov “has many industry-leading customers in many varied industries including aerospace, defense, electronics, medical devices, energy control, consumer products, and others, in the U.S., Europe, the Far East, and Israel.”
Sarine is also giving Kitov a $2.6 million loan that can be converted, after 2027, into additional equity shares, which would bring Sarine’s total stake in Kitov to 51%.
The new deal represents a slight departure from Sarine’s original plan, announced in February, to buy a majority stake in Kitov.
Sarine’s investment values Kitov at $10.6 million.
(Photo courtesy of Kitov.ai)
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