Mobile WiMAX solutions developer Runcom Technologies Ltd. has acquired Bamboo Media Casting Ltd. in an options swap deal. The acquisition comes less than a week after Runcom acquired most of IXI Mobile Inc. (Bulletin Board:IXMO).
The amount of the Bamboo acquisition was not disclosed, but Runcom founder and CEO Dr. Zion Hadad told "Globes", "The task now is to strengthen these deals and move forward, which requires money."
Runcom has $20 million in cash from its last financing round. The company develops chipsets for Orthogonal Frequency Division Multiple Access (OFDMA) technology for communications services to cellular phones and other mobile devices.
Hadad added that Runcom will hire more employees following the acquisition. Bamboo was founded in 2000 and develops video transmission over cellular networks.
Hadad said that Runcom acquired Bamboo because "ChinaTel wanted to acquire the company, but decided that it was premature to make an acquisition for its planned WiMAX network. We therefore decided that it was worthwhile acquiring Bamboo."
Runcom has a framework agreement with ChinaTel Group Inc. to supply WiMAX equipment and to invest up to $100 million in ChinaTel.
Published by Globes [online], Israel business news - www.globes-online.com - on January 4, 2009
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