Elron Electronic Industries (NASDAQ:ELRNF) announced today, the demerger of its wholly owned subsidiary' Elron Software, Inc. into two separate and independent companies; Elron TeleSoft, Inc. and Elron Software, Inc.
Elron Software is focused solely on CommandView - its award-winning line of Internet software products that help organizations to develop, implement and manage corporate Internet policy. Ray Boelig, has been named President and CEO of Elron Software reporting to Dr. Koby Ben-Zvi, Chairman of Elron Software, Inc. ``Mr. Boelig brings a focused operation perspective with a balanced blend of sales and marketing expertise,'' said Dr. Koby Ben-Zvi.
Elron TeleSoft develops and provides innovative technology products and services including IP Service Management technology, Network Management products and E-business platform to carriers, service providers, and commercial enterprises. Elron TeleSoft is comprised of three divisions each serving a specific market: Telecommunication, E-business, and Government. Dr. Koby Ben-Zvi has been named Chairman and CEO of Elron TeleSoft in addition to Chairman of Elron Software.
``The strategic decision to divide Elron Software into two companies is based on the emergence of two distinct business models within Elron Software and the rapidly growing market segments each serves. Customers and partners of the two independent companies will benefit from increased responsiveness created by very focused sales, support and R&D teams,'' said Dr. Ben-Zvi.
``The demerger of Elron Software into two independent companies will allow each of its divisions an increase focus on its product lines and its customers needs. We also view this demerger as the first step to enhance shareholders' value, as it provides investors with a clearer view of its valuable assets.'' said Elron Electronics Industries President and CEO, Ami Erel.
The demerger will not have any significant effect on Elron's financial results.
Published by Israel's Business Arena on May 8, 2000.