US company Techmedia is investing $1 million in Pegasus Technologies of Israel. The first stage of the investment was executed two weeks ago, and the remainder of the amount invested will be paid over by the end of the month, Pegasus manager and owner Gideon Sheinholtz told "Globes". He said that, in return for the investment, Techmedia would receive a 5% holding in the company, at an estimated company value of $18-20 million..
Pegasus has developed a wireless three-dimensional joystick for interactive games. The plan is for Techmedia to use Pegasus’s technology to develop a new device capable of copying documents being written on paper directly to a computer. The intention is to develop a three-dimensional pen the position of which the computer can sense. By monitoring the pen’s movements, the computer reproduces the document being written alongside it.
Techmedia’s annual sales amount to $300 million, and it plans to make a public issue in the US shortly. Pegasus is owned by the entrepreneurs who started it, the Yozma and Marathon funds, and Charterhouse of New York. Eighteen months ago, it raised $3.5 million in a private placement, and, in the past, has won the "Best CeBIT Product" award from computer magazine "Byte".
Published by Israel's Business Arena March 22, 1998