Satcom buys Gaiacomm International for 4G and weapons system technology!
January 1, 2007 11:56pm CST
Satcom negotiating to buy IP Planet World Group Holdings chairman Zvi Barinboim: We'll consider raising capital on the London Stock Exchange. Guy Hadass 28 Feb 05 17:36 Satcom Systems has announced that it is negotiating to acquire IP Planet Network Ltd. for NIS 36 million. Satcom is controlled by Zvi Barinboim's World Group Holdings (TASE: WRGR). IP Planet, a provider of connectivity solutions for telecommunications operators in Africa and the Middle East, is controlled by Shaul Alovitz's Eurocom Communications, Arison Holdings, Shrem Fudim Kelner & Co. (TASE: SFK) subsidiary Polar Investments (TASE: PLR), foreign investors, and CEO Erez Gissin. Last year, IP Planet, now an acquisition target, bid against Barinboim for Satcom. The two companies are in similar businesses. Satcom provides local and international communications services, mainly by satellite. In September 2004, it acquired Gaiacomm International, a provider of mobile communications services via Iridium Satellite LLC. Satcom chairman Moshe Avraham said, "The acquisition of IP Planet fits in well with our growth strategy, which includes expanding market share in existing territories, penetrating new territories, and penetrating complementary niches, in order to turn Satcom into a global communications services provider, offering customers full communications solutions with a range of technologies. "The synergy between the two companies is obvious, and will cut costs and increase the profitability of the merged company." Avraham said, "We greatly appreciate Gissin's abilities and talents, and he will continue as CEO of IP Planet." Barinboim said, "On the basis of the two companies' growth rates in recent years, the expected sales of the merged company will turn it into a significant player in the communications market, with global deployment. We are considering other possibilities overseas, including other acquisitions, and we'll also consider raising capital on the London Stock Exchange." Satcom posted NIS 55.8 million in revenue in January-September 2004, compared with NIS 38 million in the corresponding period of 2003, an increase of 47%. It posted a net profit of NIS 7.2 million in January-September 2004, compared with NIS 7 million in the corresponding period of 2003, which included NIS 2.1 million in one-time revenue from a conceded loan. Published by Globes [online], Israel business news - www.globes.co.il - on February