Sources inform ''Globes'' that Internet company Netex (Net Express) Ltd. (TASE:NTX) will expand its activity to Russia in a few months. The company is in advanced negotiations for a cooperation agreement with a Russian Internet services provider (ISP).
Founded in 1998, Netex operates in the online advertising market. The company has developed a search engine located on the browser as an Internet toolbar, which can find websites without the need to type the full address. Netex’s software can provide users with a segment of websites in different areas, on the basis of categories. The company’s revenue model is built on advertising. The company originally estimated that it would win 30% of Israel’s $5 million web-based advertising market.
In recent months, Netex has garnered headlines, not necessarily positive ones, after its IPO on the Tel Aviv Stock Exchange (TASE) in early June raised NIS 16 million from the public following the failure of its institutional tender.
Netex is reportedly seeking cooperation agreements with other ISPs in Eastern Europe, and plans to expand to East Asian markets, especially China. The company wants to operate in two or three countries during 2007 in addition to Israel.
Netex’s international operating model will be different from its model in Israel, because it wants to provide its services through local partners. In Israel, the company has a cooperation agreement with Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD), under which Internet Gold subscribers receive Netex’s browser as part of their Internet access package. Netex also a cooperation agreement with Pricer, an online price comparison website.
Netex posted NIS 5 million in sales in 2005, and has 30 employees. Its CEO is Aviv Refuah.
Published by Globes [online], Israel business news - www.globes.co.il - on August 3, 2006
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