On Monday, Judge Varda Alshech confirmed the sale of telecommunications solutions company Connegy Ltd. (formerly Telrad Connegy) to WiseCom Communications Ltd. of Petah Tikva for NIS 8.7 million. The acquisition was approved after an auction and a pricing process between WiseCom's bid and an bid from a group of investors from the US.
Judge Alshech approved to the request of the special administrator appointed to Connegy and the recommendation of the Official Receiver to confirm the sale of Connegy to WiseCom on the grounds that it would consolidate the company's activity in the hands of a single entity and restore it to activity in the shortest possible time. The acquisition of Connegy by WiseCom will enable Connegy employees to be rehired in order to resume product development and distribution of products worldwide.
Production of these products was recently resumed by WiseCom through an agreement with Nistec, which manufactures Connegy's "Star" line at its plant in Katzrin.
WiseCom CEO Koresh Avrahami said the acquisition of the company was intended to leverage the technology of the Star products which, besides being Israeli, was among the most advanced in the world.
The acquisition of Connegy will enable WiseCom to renew dist5ribution of its products to its customers around the world and to offer them further products in the future. Until a few years ago, annual sales of Star products (produced by Telrad Connegy) amounted tens of million of dollars worldwide. A substantial proportion of the 25 workers who remained at Connegy will join WiseCom.
Published by Globes [online], Israel business news - www.globes.co.il - on April 30, 2009
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