Taldor (TASE:TALD), controlled by Barak Dotan and Yossi Ben Shalom's DBSI, today signed an agreement with Motorola Israel to acquire the controlling interest in its subsidiary Motorola Israel Information Systems. Taldor acquired 51% of Motorola Israel Information Systems for $4 million, reflecting a company value of $8 million.
The agreement between Motorola Israel, led by general manager Elisha Yanay, and Taldor, led by CEO Asher Baharav (who owns 6.7% of the company), was reached several weeks ago, but required the approval of Motorola's (NYSE:MOT) board of directors before it could be signed. In practice, Motorola Israel Information Systems has been operating as a Taldor subsidiary for several weeks.
Motorola Israel Information Systems will change its name to Taldor Advanced Communications Systems. Through the acquisition, Taldor, which until now has been a computerization and IT company, will enter data communications. Taldor is also negotiating with Adanet's receiver to acquire the company.
Taldor provides solutions for software development, simulations and control systems, CRM, contact centers, optical scanning and archiving, e-business fulfillment, support and integration, and GIS.
Baharav told "Globes", "Now that we also have communications, if you take all these sectors, including our systems development, we have complete solutions under one roof. We are pleased to have built this infrastructure." He said the acquisition of Motorola Israel Information Systems would increase Taldor's turnover to $100 million a year.
Sources inform “Globes” that the sale of the controlling interest in Motorola Israel Information Systems was part of Yanay's policy according to which it is worthwhile selling a subsidiary to an Israeli company, in order to obtain managerial flexibility lacking at Motorola. Motorola Israel Information Systems develops data communications systems and represents international data communications equipment makers, including Cisco Systems (Nasdaq:CSCO) in Israel.
Published by Globes [online] - www.globes.co.il - on December 15, 2003