Zvi Barenboim buying Somoto's business for $50m

Zvi Barenboim photo: Aviv Hofi

The share price of Internet distribution and modernization co Somoto has jumped on the Tel Aviv Stock Exchange.

Israeli technology company Somoto, which is active in ecommerce, mobile advertising and software and application distribution and monetization, is selling its business. The company's share price jumped 10% on the Tel Aviv Stock Exchange on the news.

The board of directors of Somoto, which in recent years has made several acquisitions, decided to approve a deal to sell all the company's activities to a company controlled by Zvi Barenboim for up to $50 million (without the company's cash). According to Somoto's management, the company had $18.6 million cash at the end of March, and a net cash balance of $14.5 million after deduction of bank credit.

Somoto has a market cap of NIS 152 million following a rise of nearly 60% in its share price in the past year.

Somoto chairman Yehoshua (Shuky) Abramovich said today that until the deal with Barenboim is closed, Somoto has a go-shop right and can consider other offers. He said that assuming the current deal went ahead, the company would have a cash balance of some $65 million, and that the board would provide an update in the coming weeks concerning activity that the cash will be used for and any dividend distribution.

Published by Globes, Israel business news - en.globes.co.il - on April 14, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Zvi Barenboim photo: Aviv Hofi
Zvi Barenboim photo: Aviv Hofi
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