NetVision subsidiary Netaction is negotiating to acquire Olsale. Sources inform “Globes” that NetVision initiated the talks, which accepted the proposal to enter into acquisition negotiations.
The parties have been negotiating for several months, but only recently agreed on terms. A merger announcement is likely soon.
Olsale, owned by CEO Yair Shemesh, had NIS 180 million in sales in 2002, 30% more than in 2001. Sales in 2003 are expected to total NIS 200 million.
Most of Netvision’s e-commerce revenue in 2002 came from Netaction, which had NIS 172 million in sales in 2002, compared with NIS 136 million in 2001.
Ifat Advertising Monitoring reports that Olsale earned $4 million from advertising in list prices in 2002, 50% more than the actual market prices.
Both companies declined to comment to the report.
Published by Globes [online] - www.globes.co.il - on July 6, 2003