IES will post NIS 11 million in capital gains. New Media CEO and founder Efi Atad to receive $8 million in stock.
Israel’s high tech market continues to post successes. After last week’s closing of a deal in which US company CyLink acquired Algorithmic Research for $83 million, another company stepped up to bat today. New Media Communications, 22.5% of which is held by IES, listed for trading in Tel Aviv.
New Media was acquired for $19 million by the US public company Harmonic Lightwaves. Harmonic will allot New Media’s shareholders 1.04 million new shares and repay an owners’ loan IES made to New Media of $500,000. At the close of trading yesterday, Harmonic Lightwaves was trading at $17.5 per share.
The primary beneficiary of the transaction is New Media CEO and founder Efi Atad, who holds 44% of the company. Atad will receive shares valued at $8 million.
IES will post capital gains of NIS 11 million.
New Media was founded in 1996 and employs 15 people. The company developed technology for data transmission via broadband communications infrastructures such as cable television, satellite communications systems and wireless communications systems. The products the company developed are designed for Internet service, cable television and satellite communications providers.