Connect with us

Business

Telrad Networks sold for NIS 199m five years after IPO

Published

on

Five years after its IPO on the Tel Aviv Stock Exchange, telecommunications equipment manufacturer Telrad Networks is being sold at a valuation below that in the IPO. Liquid Intelligent Technologies is buying Telrad for NIS 199 million, which is more than its market cap before the deal was reported – NIS 157 million – but, as mentioned, less than its post-money valuation in its IPO in 2017, which was NIS 340 million. With the addition of options awarded to Telrad employees, the value of the deal comes to NIS 207 million. The deal is subject to approval by Telrad’s shareholders and also to regulatory approvals.

Telrad’s share price rose 18% this morning to NIS 3.53 after news of teh deal was released.

After the IPO, at NIS 6.5 per share in May 2017, Telrad’s share price rose to a peak of NIS 6.7, giving a market cap of NIS 345 million, in July 2017, but fell to a low of NIS 0.51 in March 2020. It has recently been traded at around NIS 3.

Liquid Intelligent Technologies is active in telecommunications, data centers, cyber, and cloud services in fifteen countries in Africa, mainly sub-Saharan Africa. The company was founded in 2005 and has positioned itself as a telecommunications infrastructure provider throughout the African continent. Telrad, which was founded in 1951, has three main areas of business, through its subsidiaries: provision of products, solutions and services to telecommunications operators; telecommunications infrastructure, cyber, and IT; and project management and digital mapping services. Liquid Intelligent Technologies will buy Telrad outright and turn it into a privately-held company.

Telrad’s main current shareholders are private equity firm Fortissimo (41%), Phoenix Holdings (6.1%) and Excellence (2.9%).

Telrad chairperson and Fortissimo managing partner Yuval Cohen said, “Telrad today is a growing company that has been profitable over the years and that has a large orders backlog for the coming years. The link-up with Liquid Intelligent Technologies, a substantial international group, will secure the company’s expansion in Israel as an important technological center for the entire group, and it penetration into new markets and new customers in the coming years.”

Telrad’s CEO for the past three years has been Moti Elmaliach, formerly CEO of Bezeq International. The company says that Elmaliach led a restructuring of Telrad and put it onto a path of growth and profitability, and that the price in the acquisition deal is 108% higher than the company’s market cap when he took up the post.

Telrad’s revenue in 2021 was $179 million, 1.2% less than in 2020. The slight decline is attributed to global supply chain problems and a pause in equipment procurement by telecommunications carriers. Only 3% of Telrad’s revenue currently comes from Africa, Liquid Intelligent Technologies’ main market. Latin America accounts for almost a third of Telrad’s sales.

Telrad’s net profit in 2021 was $5.5 million, which compares with a net profit of $8.6 million in 2020 and a net loss of $34.5 million in 2019. At the end of 2021 the company had $12.2 million cash.

Telrad was represented in the deal by Discount Capital and Lincoln International, and Adv. Chaim Friedland, Adv. Yair Shiloni and Adv. Ari Fried of Gornitzky, while Liquid Intelligent Technologies was represented by Adv. Shirin Herzog, Adv. Sharon Gazit, and Adv. Judy Amidor of Goldfarb Seligman & Co.

Published by Globes, Israel business news – en.globes.co.il – on May 8, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.


This Article was first live here.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Business

Rupee vs Dollar Today: Latest news here

Published

on

The rupee inched 3 paise higher to close at 77.53 (provisional) against US dollar on Friday, supported by a rebound in domestic equities.

At the interbank forex market, the rupee opened at 77.51 against the greenback and moved in a range of 77.49 to 77.60 in the day’s trade.

The rupee finally ended at 77.53, higher by 3 paise over its previous close of 77.56.

According to Dilip Parmar, Research Analyst, HDFC Securities, the lack of dollar demand and rebound in domestic equities augur well for the rupee.

The dollar is about 2 percent off its recent high, seen last week, as risk-assets rebound after the People’s Bank of China (PBOC) announced a 15 bps cut in the 5-year Loan Prime Rate to support the economy.

The dollar index marked the first weekly decline after six weeks of upward movement, driven by position liquidation and preference for other currencies to emerge at a lower level.

On the domestic equity market front, the BSE Sensex rebounded 1,534.16 points or 2.91 per cent to end at 54,326.39, while the broader NSE Nifty jumped 456.75 points or 2.89 per cent to 16,266.15.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.15 percent to 102.88.

Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 4,899.92 crore, as per stock exchange data.

Brent crude futures, the global oil benchmark, rose 0.10 percent to USD 112.15 per barrel. 

This Article was first live here.

Continue Reading

Business

530 new COVID-19 cases in Delhi; positivity rate 2.17 pc

Published

on

Delhi reported 530 new COVID-19 cases and zero fatality due to the disease on Friday, while the positivity rate stood at 2.17 per cent, according to data shared by the city health department.

With the new infections, Delhi’s COVID-19 caseload increases to 19,02,710, while the death toll stands at 26,199.
A total of 24,458 Covid tests were conducted in the city a day ago, the department said in its latest bulletin.

The capital had on Thursday logged 520 Covid cases with a positivity rate of 2.09 per cent and one death due to the disease.
It saw 532 COVID-19 cases and zero fatality due to the disease on Wednesday, while the positivity rate was recorded at 2.13 percent.
On Tuesday, the national capital had recorded 393 COVID-19 cases with a positivity rate of 3.35 per cent and two deaths.

The number of daily COVID-19 cases in Delhi had touched the record high of 28,867 on January 13 during the third wave of the pandemic.
The city had recorded a positivity rate of 30.6 percent on January 14, the highest during the third wave of the pandemic.
The number of active COVID-19 cases in Delhi stands at 2,229, down from 2,377 the previous day, the bulletin said.

As many as 1,602 patients are under home-isolation, down from 1,755 on Thursday, it said, adding that there are 895 containment zones in the city.
There are 9,581 beds for COVID-19 patients in Delhi hospitals, and 115 of them are occupied, the bulletin showed.

This Article was first live here.

Continue Reading

Business

EMA panel recommends Pfizer’s Xeljanz for ankylosing spondylitis (NYSE:PFE)

Published

on

EMA panel recommends Pfizer's Xeljanz for ankylosing spondylitis

This Article was first live here.

Continue Reading

Trending