Israeli 5G network intelligence company Radcom (Nasdaq: RDCM) today announced it has entered into a definitive agreement to acquire Israeli connected car company Continual (TASE: CNTL). Continual has developed mobility experience analytics that uses Artificial Intelligence (AI) and Machine Learning (ML) to deliver advanced insights to help telecom operators improve their subscribers' mobility experience.
Radcom CEO Eyal Harari said, "We are excited to welcome onboard the Continual employees and their advanced technology. This will enrich our RADCOM ACE analytics in location and mobility, helping operators optimize the subscribers' journey while traveling. Further enhancing our 5G analytics to ensure users enjoy the best customer experiences wherever they are."
He added, "To complement our innovative platform, we always look for opportunities to accelerate growth, increase our unique offering and attain access to additional accounts. This transaction represents another step in supporting our growth strategy."
Radcom has developed a 5G-ready cloud-native network intelligence solutions for telecom operators transitioning to 5G.
Continual held its IPO on the TASE 15 months ago when it raised NIS 20 million at a company valuation of NIS 60 million. Since then its market cap has slumped to NIS 6 million, although Radware is buying the company at a handsome premium for $2.5 million (NIS 9 million) cash. Consequently Continual share price is up 34% today.
Continual cofounder and chairman Omer Geva said, "The Continual team is thrilled to be joining RADCOM as a leading assurance company in the 5G era and the cloud. With 5G beginning to roll out and subscriber expectations of always-on connectivity, adding our mobility analytics to RADCOM's already rich assurance portfolio will strengthen its capabilities as it develops best-in-class solutions for leading telecom operators worldwide."
The deal is expected to close within three months, and Radcom expects revenue from Continual in 2023 to be less than 5% of its total annual revenue.
Published by Globes, Israel business news - en.globes.co.il - on February 20, 2023.
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