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.