Fabless semiconductor start-up Novafora Ltd. is selling off its assets, after closing down in July. Founded by CEO Zaki Rakib and his brother, chairman Shlomo Rakib, the company is asking only $800,000 for its assets, only a fraction of the $20 million invested in the company.
Founded in 2006, Novafora was trying to develop chipsets for video processing. In 2008, it acquired Nasdaq-listed low power processor developer Transmeta Corporation for $255 million.
Novafora is selling its intellectual property, including that of Transmeta, by tender this week. Bidders can buy all or part of the assets, including those of Transmeta, for which Novafora is asking just $225,000.
Novafora had 40 employees when it closed, mostly at its Silicon Valley premises. Israeli investors included Gemini Israel Funds and Vertex Venture Capital.
Novafora was the Rakibs' second company to develop video processors. They founded Terayon Communication Systems Inc., which developed broadband gateways for the home, in the 1990s and was taken public on Nasdaq. Motorola Inc. (NYSE: MOT) acquired Terayon for $140 million in 2007, only a fraction of Terayon's peak market cap of $6 billion during the high-tech bubble.
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009
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