Fortissimo Capital is believed to be interested in acquiring a 40-50% controlling interest in wireless broadband solutions developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) at a company value of just $30 million - in other words, an investment of $15 million.
Fotissimo, run by managing partner Yuval Cohen, has a track record in turning around floundering high-tech companies that were struggling to achieve their potential, including including the sale of Nur Macroprinters to Hewlett Packard Co. (NYSE:HPQ), the sale of 3D orthodontic and dental imaging systems Cadent Holdings Inc. to Align Technologies Inc. (Nasdaq; ALGN), the IPO of Sodastream International Ltd. (Nasdaq: SODA), and most recently, AOD Software (sold to Primus Capital).
Alvarion may be in talks with other private equity funds to provide the managerial and financial resources it needs to carry out critical measures.
Alvarion declined to comment on the report, and Fortissimo did not respond.
Alvarion already announced two months ago that it was planning strategic measures to improve and increase value for its shareholders. The company needs to act fast, in view of ongoing decline: its cash reserves were down to $51 million at the end of March, its sales are down, and its workforce is contracting.
Alvarion has been trying to expand from its WiMAX solutions base, through the acquisition of Wi-Fi solutions developer Wavion Inc. for $30 million in late 2011. Wavion now accounts for a third of Alvarion's sales, but to speed up the new operations, Alvarion needs substantial resources. It is trying to obtain a $30 million credit line from Silicon Valley Bank, but that may not be enough to repay its debts and finance the entry into the Wi-Fi market.
The company recently brought in Hezi Lapid as CEO after the resignation of Eran Gorev.
Alvarion's share price rose 4.2% on the TASE today to NIS 1.54, after rising 5.1% on Nasdaq yesterday to $0.40, giving a market cap of $25 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 4, 2012
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