The $150-200m purchase is the first acquisition of an Israeli company by US giant Corning.
Corning Inc. (NYSE: GLW) has acquired Israeli wireless network solutions developer MobileAccess Ltd.. Corning did not disclose the terms of the agreement, but sources inform ''Globes'' that the price tag is $150-200 million.
MobileAccess, formerly Foxcom Wireless, was founded in 1998 as a spinoff of OnePath, and subsequently raised $60 million. The company develops distributed antenna system (DAS) solutions for wireless telecommunications coverage inside buildings. The company's customers include AT&T Inc. (NYSE: T), Verizon Corporation (NYSE: VZ), and Deutsche Telekom AG (NYSE: DT; DAX: DTE), as well as financial and other corporations. The company reportedly had $30-40 million revenue in 2010.
MobileAccess has undergone several reincarnations, and was on the verge of closing in 2002. At that point, it underwent a facelift, turned its focus on the North American market, and outsourced the manufacture of its products.
This is the first acquisition of an Israeli company by Corning, which has a market cap of $34 billion.
MobileAccess will be integrated into Corning Cable Systems, part of Corning’s telecommunications business segment. Corning manufactures specialty glass and ceramics for keystone components for consumer electronics, mobile emissions control, telecommunications and life sciences.
Beneficiaries of the acquisition include investors Genesis Partners, Pitango Venture Capital, Poalim Ventures, and Eurofund. Poalim Ventures and Eurofund do not manage active venture capital funds. Viola Private Equity was the last investor in MobileAccess, investing $8 million a year ago.
MobileAccess CEO Ron Kaiser said, "Working with Corning, a world-leading optical connectivity company, provides MobileAccess with a great opportunity to extend our strong position in the growing wireless market."
Published by Globes [online], Israel business news - www.globes-online.com - on February 1, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011
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