Israeli alternative fixed line operator NetVision has signed a definitive agreement concerning an operational merger with rival Barak ITC and corporate services provider GlobCall Communications. Barak is a subsidiary of Clal Industries which, alongside NetVision investors Discount Investment Corporation (DIC) and Elron Electronic Industries, is part of Israel’s powerful IDB Group. According to TeleGeography’s GlobalComms database, Barak and NetVision had a 35% share of Israel’s international telephony market and 33% of the ISP market (excluding cable services) at the end of 2005.
Under the terms of the deal NetVision will purchase 100% of Barak in exchange for 46.5% its shares. Upon completion of the deal, NetVision will acquire all of GlobCall in exchange for 7% of the share capital of the merged NetVision-Barak company. The deals value NetVision at between USD122 million and USD142 million, Barak at between USD105 million and USD121 million, and GlobCall at between USD15 million and USD21 million. The transactions remain subject to obtaining board and other required corporate and legal approvals.