Steel Partners Ultimatum to InMode: Buyout Offer Expires End of October

Activist investor Steel Partners has issued an ultimatum to medical aesthetics company InMode, setting a deadline of the end of October for its $16.75 per share buyout offer. This offer represents a 19% premium over InMode's current trading price. Steel Partners, which holds a 3.18% stake in InMode, warned that it would take further action against the company's board if its offer is not seriously considered. The investment firm has already filed a lawsuit against InMode's board and management in the Haifa District Court.

InMode, currently valued at $814 million, has been the subject of a takeover battle since early 2026. The company's stock price has fluctuated during this period, reaching a high of 18% above its January price before falling back, as no acquisition offers have been accepted. At its peak in 2021, InMode was valued at $7.5 billion.

Disagreements have emerged regarding access to information. Steel Partners claims that InMode's board demanded the withdrawal of a lawsuit filed by Steel as a condition for further negotiations. While Steel agreed to freeze the lawsuit, it refused to withdraw it. Steel alleges that InMode has failed to provide a confidentiality agreement, access to a data room, or necessary documents for due diligence, which it views as a breach of the board's fiduciary duties. Sources close to InMode confirmed the demand to withdraw the lawsuit but stated that Steel's failure to sign a non-disclosure agreement (NDA) prevented it from receiving information.

Steel Partners' offer was initially made alongside a competing bid from a group led by InMode founder and CEO Moshe Mizrahi, which proposed $16.20 per share. However, Mizrahi's offer expired about a month ago, leaving Steel's as the sole remaining bid. Sources suggest Mizrahi's offer lapsed because Steel requested the court to suspend its discussion until its own proceedings were completed, which effectively stalled the board's consideration of Mizrahi's bid.

InMode's board includes Chairman Shlomo Nes, founders Mizrahi and Krayndel, investor Dr. Hadar Ron, and Nadav Kennet. Steel Partners claims all board members have close prior ties to Mizrahi. InMode is expected to release its third-quarter and nine-month financial reports in about two weeks, but has stated it will not hold investor calls if the sale process is ongoing. The company did disclose that its revenue and profits for the first nine months of 2026 are projected to be between $365-$375 million, unchanged from the previous year and in line with forecasts. Steel Partners has also criticized InMode's financial performance, citing stagnant revenues, declining gross and operating profit margins, and multiple forecast reductions, despite the company remaining cash-flow positive with no debt.

Steel Partners is an American holding company co-owned by Warren Lichtenstein and John Howard, known for its activist investment strategies. InMode develops and markets energy-based systems for skin tightening, body contouring, hair removal, and women's health. Founder Moshe Mizrahi, 72, built InMode with his own capital, achieving significant growth before its 2019 Nasdaq IPO, and has personally profited around $200 million from stock sales. While credited with the company's early success, he has faced criticism for recent revenue declines, which he attributes to rising interest rates, the war, and shipping challenges.