Networking products developer BOS Better Online Solutions (Nasdaq: BOSC) today said it closed a previously announced share-swap transaction with Israeli venture capital firm Catalyst Investments, L.P..
Under the deal, BOS issued Catalyst with 2.5 million of its shares, representing 16.6% of the company. In exchange, Catalyst transferred to BOS most of its shares in Israeli start-up Surf Communications Solutions, which develops access solutions for packet telephony networks. BOS is now the largest shareholder in Surf.
Catalyst notified BOS today that it signed an agreement for the purchase of an additional 1.26 million shares from another shareholder, at a price of $0.47 per share. Following that transaction, Catalyst will become the largest shareholder of the company, holding almost 24.9% of its total outstanding shares.
BOS CEO Israel (Izzy) Gal, commented, "We believe that our new shareholder, Catalyst Investments, L.P., has much to contribute to our company, and look forward to a productive business relationship."
Catalyst was established in mid 2000 by Cukierman & Co. Investment House, which has raised about €300 million for Israeli companies from European investors. The fund is jointly managed by Edouard Cukierman and Boaz Harel. Its chairman is Yair Shamir
BOS shares closed on Nasdaq on Monday at $0.49, which reflected a $6.2 million company value.
Published by Globes [online] - www.globes.co.il - on 1 April, 2003