Netvision and Barak merger edges nearer

1 Aug 2006

Israeli internet service provider Netvision is in advanced talks to merge with telecoms provider Barak ITC, one of Netvision’s main shareholders has told Reuters. Elron Electronic Industries, which holds 39% of Netvision, said some basic understandings have been met, whereby Netvision would buy all of Barak’s share capital in exchange for about 47% of Netvision’s shares. The two companies are both subsidiaries of domestic holding company IDB Development Corp, and have been in discussions regarding a merger since May.

NetVision provides internet services via dial-up, dedicated lines, ISDN, cable modem and ADSL, as well as LAN-to-LAN, communication servers, data security system integration and maintenance, private networks for international corporations, application hosting, and custom online services. Barak offers a full portfolio of fixed line services via ADSL, IPVPN, ATM, frame relay, ISDN and dial-up. IDB is a major shareholder in Elron and Netvision via its subsidiary Discount Investment Corp, as well as Barak via its subsidiary Clal Industries.

Israel, NetVision