VocalTec is negotiating a merger with RADLINX of the RAD Group. According to estimates, the merger will be effected by allocation of VocalTec shares to RADLINX owners, based on a RADLINX company value of $10 - $20 million. VocalTec’s current market value amounts to $186 million.
RADLINX’s product line complements that of VocalTec. RADLINX developed a product based on hardware and software for the transmission of faxes on the Internet. VocalTec developed software products for the transmission of telephone calls on Internet protocols, and sought a partner in the Internet fax field, in order to combine the two technologies into a complete product line.
Until now, VocalTec had technological cooperation in the fax field with CMR of Kfar Saba.
RADLINX’s product, PASSaFAX, enables the transmission of fax messages via the Internet, with the sending and receiving executed by an ordinary fax machine, or through electronic mail.
The field of faxes and telephony on Internet protocols is currently growing, and the sector is experiencing mergers and acquisitions. Half a year ago, Deutsche Telekom purchased 21% of VocalTec shares for $48 million, and later Nortel purchased 20% of Arel Net for $5 million. A LanOptics subsidiary, NetExchange is also negotiating to merge with giant multinational telecommunication companies.
"Globes" did not receive any comment from VocalTec and RADLINX on the report.
Published by Israel's Business Arena March 9, 1998