Celldor buys Telrad Connegy

Telrad Connegy develops communication solutions for small and medium sized enterprises

27 February 06 18:6, Guy Hadass

Celldor Ltd., a manufacturer and developer of RF and Microwave components has acquired Telrad Connegy Israel and its US affiliate Telrad Connegy US from its parent company Telrad Connegy Communications. The Telrad Connegy parent company is controlled by Telrad Networks Ltd. (52%) and a number of venture capital firms headed by Vertex Venture Capital. The company was sold for a few million dollars, a move that reflected Telrad’s longstanding desire to find a buyer for its subsidiary.

Telrad Connegy develops communications solutions for small and middle sized enterprises and markets its products through a distribution and service network in the US, Europe and Israel. The Telrad Connegy communications system, which is sold in Israel under the ‘Star’ brand and the ‘Advance IP’ brand overseas, integrates traditional digital telephony with IP technology.

In November 2004, Fortisimo Capital jointly acquired with HarbourVest Partners and Poalim Ventures Ltd a 39% share in Telrad from Koor Industries (NYSE: KOR; TASE: KOR). The sale led to the transfer of business communications activities to related organizations within the Telrad group, i.e. the subsidiary Telrad Connegy. This led in turn to the decision to separate Telrad Connegy from its parent so that the latter could continue to focus on its new core activities in the large communications service providers sector.

Commenting on the sale, Telrad CEO Dror Pockard said, “The Telrad management has set out a new strategic direction that will see the company focusing on integrated system services and global NGN transition projects. This decision required changes in the company’s divisional structure and one of these was the decision to sell Telrad Connegy.”

Published by Globes [online], Israel business news - www.globes.co.il - on February 27, 2006