Israeli dot.com company Hotbar Inc. will merge with 180 Solutions Inc., which develops solutions for online advertising, to form a new company named Zango. No details were disclosed about the deal, which is believed to have been transacted at a value of NIS 52 million for Hotbar,
The new company will offer customers Hotbar’s toolbar software, which enables users to change their toolbar to include links to services the company offers, including online video services, games and music. It will also offer new products that will be developed at Zango’s laboratory.
Hotbar president and CEO Dobronsky said, “We have built a broad customer base, and our wide range of web-based services will give us access to many advertising opportunities. The merger with 180 Solutions will enable us to meet the demand from both customers and advertisers through the new range of solutions that Zango will offer.”
Founded in 1999, 180 Solutions was the first company to develop solutions for online advertising. In 2002 it changed its business model and now offers users free Internet access in exchange for their consent to receive pop-up advertising through its Zango software.
Hotbar was also founded in 1999 by Dobronsky and president Gabriella Karni. The company has raised $15 million to date. Its investors include Eurofund, Tamar technology Ventures, Technorov Holdings, CE Unterberg Towbin, Deutsche Bank subsidiary ABS Ventures, and several private investors.
Published by Globes [online], Israel business news - www.globes.co.il - on June 7, 2006
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