Sources inform "Globes" that UK wireless communications company Axell Wireless will pay Koor Industries Ltd. (TASE:KOR) and other owners several million dollars for the activities, assets, IP, inventory, along with most of the staff, of Dekolink Wireless Ltd., but will not acquire the company itself. Axell will make the company into its Israeli R&D center. Axell is one of the world's largest providers of wireless coverage solutions.
Founded in 2002 as a spin off of Elbit Systems Ltd. (Nasdaq: ESLT; TASE:ESLT) unit Elisra, Dekolink develops wireless communication building blocks for cellular networks.
Since November 2005, Koor has held 70% of Dekolink.
According to IVC, Dekolink had sales of about $32 million in 2007, but revenue fell sharply in 2008 when the company lost its main customer. Last year, Dekolink downsized the workforce at its Petah Tikva plant from 80 to 30.
Avalon Capital Ltd. advised Axell during the acquisition. Avalon Capital founding partner and CEO Joseph Sabet said that the negotiations were very intensive and took place over the past few weeks.
Published by Globes [online], Israel business news - www.globes-online.com - on January 27, 2009
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