A little more than a year after its last acquisition, SuperCom Ltd.(Nasdaq:SPCB) is acquiring another company. In late 2013, SuperCom acquired a unit from Israeli OTI – On Track Innovations Ltd. (Nasdaq: OTIV; DAX: OT5) for $10 million. SuperCom now plans to acquire another Israeli company, but this time with a smaller price tag. SuperCom will pay up to $2.5 million in cash for cyber-security company PreVision . Founded and managed by Guy Karsenti, PreVision is located in Herzliya, not far from SuperComs offices, and provides security solutions for the protection of strategic assets to governments, militaries, and large organizations, including critical infrastructures, and fields such as communications and finance.
In an interview with Globes two months ago, SuperCom controlling shareholder and CEO Arie Trabelsi said that the company was examining the possibility of big acquisition. It does not seem likely that he was referring to ProVision, the acquisition of which is expected to be finalized within 60 days. SuperCom had $6 million in its coffers at the end of the third quarter, and has an open prospectus to raise up to $50 million on Wall Street.
SuperCom is active in the field of EID – electronic identification and smart passports, and M2M – machine to machine communications. SuperCom has stated that the acquisition of ProVision is part of its strategy of offering supplementary security solutions to its client base. Security needs grow, and governments are looking for reliable partners to help them in this fast-changing environment. Our extensive experience in providing national security solutions positions us as a reliable partner, and with the addition of ProVisions abilities, we will be able to provide additional cyber-solutions as part of our security solution, said Trabelsi. He added that the company that is being acquired is profitable, and has similar margins to SuperComs.
SuperCom is traded on the Nasdaq with a market cap of $137 million dollars, after rising more than 1,600% in two years. Since its peak in late October, the companys share price has fallen 27%.
Published by Globes [online], Israel business news – www.globes-online.com – on January 7, 2015
Copyright of Globes Publisher Itonut (1983) Ltd. 2015