Stock market shell Israel Growth Partners Acquisition Corp. (IGPA) (Bulletin Board: IGPAU has signed a letter of intent to acquire an Israeli-based high-tech company. IGPA plans to merge the target company with its R&D center in Israel and its marketing and support facilities in Santa Clara, California. Sources inform ''Globes'' that IGPA's target is Negevtech Ltd., which develops innovative company specializing in wafer inspection and yield control solutions for the semiconductor industry.
IGPA is controlled by chairman Matty Karp and CEO Carmel Vernia, who have been seeking a suitable start-up for acquisition since floating IGPA 18 months ago. IGPA said that the target was backed by Israeli venture capital firms. It added that plans to sign a definitive agreement with the target company in February 2008 and to file the preliminary proxy shortly thereafter.
IGPA raised $52.9 million in July 2006. Under SEC regulations, a blank check company must complete a merger within 18 months of the IPO, or within 24 months if a letter of intent for a merger was signed within 18 months.
Two of Negevtech's shareholders, Orbotech Ltd. (Nasdaq: ORBK) and Qualitau (TASE: QLTU) have both written off their investments in the company after it failed to hold an IPO on Nasdaq and raised $15-20 million from its current investors instead.
Negevtech has raised $100 million since it was founded. Investors include Intel Capital, Genesis Partners, Pitango Venture Capital, Star Ventures, Poalim Ventures, Plenus Venture Lending Fund, Lehman Brothers, Germany's Wellington Partners, and Pan-European fund Amadeus Capital Partners Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2008
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