Telecommunications company Bezeq (TASE: BEZQ) is selling its subsidiary Bezeq Online to One Software Technologies (TASE: ONE), which provides IT services, and is headed by Adi Eyal. The price in the deal is NIS 50 million. Bezeq says that the sale is part of a focus on the group’s core business, in line with its business strategy. The deal was led by Rosario Capital.
Bezeq states in its notification to the Tel Aviv Stock Exchange that Bezeq Online is not synergetic with its main business and is not a material asset for the group. Bezeq expects an immaterial capital loss from the deal. The company has a book value of NIS 57 million.
One Software Technologies plans to finance the deal from its own resources. At the end of June, it had NIS 395 million cash.
Since 2000, Bezeq Online has set up, managed and operated telephonic helpdesk centers. Its customers are large organizations in the public and private sectors. Its activity matches the services provided by One Software Technologies.
In the first half of this year, Bezeq Online had revenue of NIS 102 million and an operating profit of NIS 1.6 million. Its 2,400 employees will continue in their jobs under the new ownership, and the company will continue to be run by Avi Atias.
Bezeq chairperson said, "The sale of Bezeq Online represents a further substantial step in the implementation of the group’s strategy. We shall continue to focus on our core capabilities, and to channel resources to strategic tasks, such as expanding the fiber optic network, implementing 5G technology, and transferring television services to an IP-based platform."
Published by Globes, Israel business news - en.globes.co.il - on November 10, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.