Babylon to invest NIS 4.6m in Somoto

The companies also signed a three-year commercial agreement.

Babylon Ltd. (TASE:BBYL) today announced that it will invest in Somoto Corporation. Babylon will invest NIS 4.6 million in cash in Somoto for a 4.1% stake in the company. The companies also signed a three-year commercial agreement, under which Somoto will offer its users Babylon products in at least half of its installations, on the basis of a price mechanism set out in the agreement.

Somoto is registered in the British Virgin Islands. Two weeks ago, it filed a draft prospectus for an IPO on the Tel Aviv Stock Exchange (TASE). The company provides software monetization tools via a smart installation system.

Babylon said, "At this stage, the company cannot estimate the effect of the commercial agreement on its financial results."

Six weeks ago, Babylon announced the acquisition of 100% of start-up Woolik Ltd. for NIS 8 million in cash and shares. Woolik develops online search solutions that personalize the user's browser, adding value to search page users, and enhancing the user experience.

Published by Globes [online], Israel business news - - on July 21, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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