Israeli start-up Nuvisio sold part of its activities to BabyMint of the US. Under the agreement, Nuvisio sold its NestEggz turn-key promotion solutions for $4.5 million in cash, on the condition that Novisio will receive royalties from sales generated by the unit. BabyMint will receive all pending patents, customer lists and some employees.
The companies expect the sale to be completed by the end of the current quarter. Nuvisio employees at its New York headquarters and Herzliya development center will transfer to BabyMint’s center in Atlanta.
NestEggz develops electronic discount coupons for sales promotions. Consumers can use the technology to print coupons directly from the retailer’s website. Each coupon is marked with a barcode, providing the coupon supplier with a record of all coupons distributed, their exercise date and details about the user.
Nuvisio is also selling its NestEggzRx marketing program that enables pharmaceutical companies to improve patient compliance and adherence to their brand.
BabyMint is a privately-owned micro-investment company that collaborates with retail chains to offer rebates to consumers toward college tuition plans for their children, through its coupons. Consumers pay the denominated price for goods, and the coupon rebate is paid into the savings account. Family members and friends can share a single account, using the BabyMint coupons to deposit money into it. BabyMint is in partnership with over 700 leading retailers, including Wal-Mart Stores (NYSE:WMT), GAP (NYSE:GPS) and Kelloggs. Its competitors include Upromise and EdExpress.
Nuvisio was founded in 2000 by president and CEO Dani Birnbaum (former CEO of Pillbury Israel), CTO Alon Geva, and SVP R&D Shai Gerably. The company has raised $13 million to date in three financing rounds. The most recent round, in March 2002, raised $5.3 million at a company value of $10.8 million.
Investors include Jerusalem Venture Partners and Toshiba.
Published by Globes [online] - www.globes.co.il - on January 30, 2003