ITRAN Communications sold licenses to manufacture $3 million worth of its products, and raised $2 million from its Japanese partner.
Israeli start-up ITRAN Communications has set up a joint venture called PremiNet with three Japanese public companies. ITRAN develops chips to transmit data over power lines. The project aims to deliver communications to private homes via power lines. The initial investment in the project is $500,000. Under the project, ITRAN sold $3 million worth of manufacturing and distribution licenses for its products in Japan. ITRAN's partners in the venture also invested $2 million in the company.
ITRAN's Japanese partners in PremiNet are Kinden (51%), ALPS Electric Co. and Macnica (8.5% each); Itran owns 32%. PremiNet will develop power line communications products for the household market. Initial revenue forecasts for 2003 are $6 million.
ITRAN is also setting up another joint venture in Japan with Kepco and Matsushita Electric Industrial (NYSE:MC), called LineCom. The venture will develop household access products based on power line communications technology.
ITRAN was founded in late 1996 by Dr. Dan Raphaeli and Avner Matmor. The company has raised $12 million to date. Shareholders are Microsoft (Nasdaq:MSFT), Argoquest Holdings, Technoplus Ventures and MVP. The company has 60 employees at its branches in Beer Sheva, Tel Aviv and Florida.
Published by Israel's Business Arena on 18 January 2002