Afcon Holdings Group and Tadiran Telecom executives have made presentations in recent days to prospective buyers of the communications subsidiary, sources inform “Globes”. Afcon, controlled by the Shmeltzer family, values Tadiran at $30 million (NIS 100-120 million), according to the same sources.
In response, Afcon said, “The company frequently receives inquiries about Tadiran Telecom; at this stage, there is nothing to report.”
Tadiran Telecom develops, manufactures, sells, and services enterprise communications solutions, including business phones, servers, call centers, cloud services, and communications infrastructure. The company operates internationally; it has regional corporate offices in the US, China, Russia, India, and Israel.
In the presentation given by Tadiran, the company emphasized the product it hopes will spur its future growth - the Aeonix communications solutions. The new flagship suite is destined to replace the Coral product family, which is one the company’s key offerings today.
Afcon says the Aeonix is an innovative software-based communications solution that “will become the primary driver of sales growth for the group in the coming years”, thereby becoming the heir apparent to the Coral suite.
In its first quarter 2016 report, Afcon stated that its communications division revenue increased by 19% to NIS 37 million, bolstered by the launch of the Aeonix - and hurt by a drop in sales for Coral systems. But the product-line switch has also driven operational losses, which totaled NIS 4.5 million in the first quarter and NIS 3.5 million in the corresponding quarter of last year; the losses are in both cases attributed to investment in the development and marketing of the new product.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2016
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