Gama Communications and Unitel signed an agreement today, in which Gama will acquire Unitel’s activity and software for $200,000. Gama Communications already started a few weeks ago to provide Unitel’s 100 customers with services, after the company closed down and dismissed its twenty-six employees.
Unitel was founded by Eyal Bartfeld and Motti Ziss in 1993. In 1996, Nice acquired 25.1% of the company for $650,000. In October 1998, Discount Investments invested $1.6 million in the company, through its communications division, as a standing loan, in exchange for the option to purchase 25% of company shares. Discount Investments also had the option of increasing its holding to 42% for $1 million. The deal was completed at a company value of $6.4 million.
Unitel developed a unified messaging system, allowing e-mail, voice mail and fax messages to be displayed on computer screen in a uniform format. At the beginning of 1998, the company announced a new product that operates on Windows NT and currently represents its flagstaff product.
In the past twelve months, Unitel has developed a more advanced product. After ordering a market survey, Discount Investments found that the company would require $7-8 million to set up a marketing network in the US. Discount Investments decided there was no economic feasibility in setting up such a system.
Gama Communications, controlled by Yaakov Halperin, deals in the development and sale of business telephone exchanges and voice answer-back products. It is listed on the Tel Aviv Stock Exchange at a company value of NIS 3.6 million, and closed Q1 ’99 with a NIS 42,000 loss on revenues of NIS 3.9 million.
Published by Israel's Business Arena July 15, 1999