Israeli virtualization software developer MiniFrame Ltd. has signed a strategic partnership with South Korea's LG Electronics Inc. (KSX: 66570) to offer a joint solution for the Point of Sale (POS) market. MiniFrame will provide its SoftXpand desktop virtualization software for new LG network POS monitors.
MiniFrame CEO Raz Rafaeli estimates that the partnership will generate NIS 20-25 million for the company over the next five years.
MiniFrame was founded in 2004 at the Granot incubator. The agreement with LG is a major jump for the company, considering its results to date. Rapac Communication and Infrastructure Ltd. (TASE: RPAC), which owns 58% of MiniFrame, stated in its financial report for the third quarter of 2010 that MiniFrame posted an operating loss of NIS 5 million on NIS 1.3 million in sales in January-September. A year ago, Rapac increased its holding in MiniFrame at a company value of NIS 9.5 million.
Rafaeli added that MiniFrame was "in contact with other companies of a similar size in order to reach more agreements."
MiniFrame has raised $4 million to date, mostly from Rapac. It will try to use its current and pending agreements to raise more capital from a strategic investor or venture capital fund. The company's technology can run several separate work environments on the same hardware, similar to a virtual desktop.
Published by Globes [online], Israel business news - www.globes-online.com - on February 16, 2011
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