IXI Mobile is about to close a huge $20-30 million financing round. Sources inform “Globes” that that the company is raising the capital from existing shareholders and US venture capital funds. The sources added that the round would be held at a company value of $50 million, before money. This is one of the largest financing rounds carried out in Israel lately, both in terms of size and company value.
IXI Mobile was founded by experienced entrepreneurs: CEO Amit Haller, CTO Ziv Haparnes and chairman Gideon Barak. Heller and Barak previously founded Butterfly, which was sold to Texas Instruments (NYSE:TXN) in 1999 for $50 million. Texas Instruments is an investor in IXI Mobile. Other investors include Gemini Israel Funds, which also invested in Butterfly and is an investor in IXI's current round; and Western Technology Investments (WTI), a Silicon Valley-based private equity fund that provides financial services to fast-growing companies. WTI manages $1 billion in three funds, including $720 million raised in 2000 for its latest found. WTI has invested $4.5 million in IXI Mobile and $6.5 million in Atrica.
This is not the first time that IXI Mobile has won the confidence of new and existing investors. The company held two financing rounds, raising $12.5 million in December 2001 and $15 million in October 2002.
Heller declined to comment on the report. He said the company was in the midst of a financing round and did not want to disclose details until the round was closed. Barak also declined to comment about the round, only saying today, "The company is in excellent shape. We have large potential markets, but I cannot comment about the financing round because that might cause needless harm."
"Globes": Will this be your final private round?
Barak: "That always depends on the markets. If the board of directors decides another round is needed, such as a mezzanine round, before an issue at a higher value, we'll do it. We'll continue to do the right thing for the company."
So you're planning to hold an IPO.
"Every company I found has two possible destinations: an IPO or a merger with a larger company. In general, I must state that I'm not of the opinion that an IPO is necessarily the preferred route that gives the best value for investors. But, as I said, it's important to emphasize that that's my general opinion, and does not specifically refer to IXI."
Published by Globes [online] - www.globes.co.il - on June 1, 2004