Chinese XIO Group buys out Israeli Lumenis for a reported $510 million. Photo: Vimeo Screenshot.

Chinese investment fund XIO Group has agreed to acquire Israeli medical technology developer Lumenis for $14 per share in cash, or an aggregate $510 million, making that the highest tech exit for an Israeli company this year so far.

XIO Group paid a 16 percent premium on NASDAQ-listed Lumenis’ closing stock price on Wednesday, and 20% above its IPO price in early 2014, according to Israeli economic newspaper Globes.

“This acquisition is a strong recognition and vote of confidence in Lumenis’ achievements and its employees, and I am excited about the future prospects of Lumenis,” said Lumenis CEO Tzipi Ozer-Armon.

“We have created a very bright and promising future for Lumenis by building a robust pipeline of innovative products, a strong sales team in each region, and by enhancing our global brand recognition. I am confident that we will continue to thrive and reach new heights together with XIO Group,” she said.

Lumenis’ noteworthy developments are in laser technology, intense pulsed light and radio frequency.

Lumenis’ two largest shareholders, Viola Group and XT Hi-Tech Investments, which together controlled 59% of the company’s stock options, have entered into a customary voting agreement with XIO Group, according to Globes.

The deal not only marked the most lucrative Israeli exit this year, but underlined an expanding relationship between the Israeli and Chinese hi-tech industries.

According to Haaretz, the value of Israeli hi-tech financing rounds involving one or more Chinese interests was expected to shoot up 54% this year. Some analysts believe China will surpass the U.S. for hi-tech investments in Israel in 2015.

Last year was an all-time record breaking year for Israeli tech exits, which valued altogether at about $15 billion, compared to $1.2 billion the year before.