Aman Computers Ltd., fully owned by CEO Amir Pasternak and his son Ben, is about to submit an offer to purchase Gad Zeevi's shares in Malam Systems (TASE:MLAM). The bid will apparently be made through a financial group interested in Malam's stock market shell. Aman Computers is expected to absorb Malam's activities into its IT business.
With this offer, Aman Computers will join the slew of parties interested in the 67.4% stake of Malam System, which is expected to be sold at a company value of NIS 140 million - 40% above the current market cap. Other companies likely to make offers for the controlling interest in Malam are Matrix IT (TASE:MTRX), Ness Technologies (Nasdaq:NSTC), and Taldor Group (TASE:TALD), and reportedly Zvi Barinboim's SPL Sotware, too.
Aman Computers reportedly expects to post a profit of NIS 25 million on NIS 130 million in revenue in 2004. The company's shareholders equity is NIS 93 million, which finances a balance sheet total of NIS 155 million. In the event that the company does not submit a joint offer with a financial group to purchase the controlling interest in Malam, Aman Computers is expected to make an independent bid with bank financing.
So far as is known, the financial group in question is likely to acquire all of Galaxo Group in a single bloc, provided that the Tel Aviv District Court dismisses Zeevi's appeal against First International Bank of Israel (TASE:FTIN1;FTIN5). Zeevi owes the bank NIS 280 million.
Founded in 1972, Aman Computers is one of Israel's oldest IT companies. The company has made a number of acquisitions in the past 18 months, the largest of which was acquiring the controlling interest in SCP Systems Ltd. in early 2004 at a company value of NIS 10 million.
Aman Computers also acquired the outsourcing activities of Ido Computers and Marketing Services for NIS 2 million, ADIT IT from the Adanet group, and two companies in Russia and Poland for $1 million.
Aman Computers also acquired a company not related to its core business: Neve Tsuf Computers, which develops security systems, for NIS 7 million. Ben Pasternak said Aman Computers acquired the company in order to obtain a foothold in the security market, which is characterized by high entry barriers.
As a result of the acquisition campaign, Aman Computers now has 400 employees. Its offices are in the Bnei Brak industrial zone.
Published by Globes [online], Israel business news - www.globes.co.il - on January 4, 2005