Mobile Tornado has raised $15 million from a group of British investors. Mobile Tornado founder, president and CEO Jorge Pinievsky said this was an investment, not an acquisition. "After the investment, we will move the company headquarters to Ireland, although we'll keep our R&D center in Israel."
Pinievsky said the money would be used to expand the company's activities, especially in sales, and would not be distributed among the shareholders.
John Swingewood, a former director at British Telecom (NYSE:BTY; LSE:BT.A) and Sky television, led the group of investors. Pinievsky said, "We won't disclose numbers because both the investors and Mobile Tornado are private. All I can say is that a considerable amount will be invested in the company to expand its activities. Moving the company headquarters to Ireland, will make us eligible for grants from the Irish government, and to increase our staff."
Founded in 2000, Mobile Tornado is in the first stages of developing a push-to-talk (PTT), or walkie-talkie, system for the wireless industry. It has raised $2.5 million to date from Noga Technologies and Eurocom Communications. The company has signed two deals with Chinese wireless operators to date.
Published by Globes [online] - www.globes.co.il - on February 18, 2004