Formula Systems (1985) Ltd. Acquires 60% of Formula Vision Technologies (F.V.T.) Ltd. Ordinary Shares by Way of Private Placement
Wednesday December 10, 3:00 am ET
HERZLIYA, Israel, Dec. 10/PRNewswire-FirstCall/ -- Formula Systems Ltd. (Nasdaq:FORTY - News), a leading provider of information technology products, solutions and services, today announced that, it has decided to acquire ordinary shares of Formula Vision Technologies (F.V.T.) Ltd., an Israeli company whose shares are traded in the Tel-Aviv Stock Exchange ("F.V.T"). As consideration for the purchase, Formula will exchange a portion of the debt owed by F.V.T to the Company in the amount of approximately $35 Million. Under the terms of the transaction, the Company will purchase from F.V.T. 38,000,000 ordinary shares, which will constitute, post transaction, approximately 60% of F.V.T's outstanding shares, at a price per share which reflects the average closing share price of F.V.T's shares on the Tel-Aviv Stock Exchange during the last 30 days preceding the Company's resolution, that is 4.11 NIS per share.
F.V.T is a managing, holding and investment company, and is a major shareholder in approximately 15 privately held companies with innovative, proprietary technologies and solutions, targeting international markets; most of its portfolio companies were acquired two years ago from the Company. As consideration for that acquisition, as well as in connection with financing provided by the Company to F.V.T., F.V.T. issued to the Company debentures in the aggregate principal amount of approximately $80 million.
F.V.T.'s affiliate companies are a diverse group, with leading-edge IT solutions in fields including Telecom and Broadcast, Aviation, Travel, Insurance, Retail, Customer Relations Management, 3-D Modeling, System Reliability applications that meet the demand for Web based systems, legacy mainframe and mobile networks.
Among F.V.T affiliate companies are:
F.I.S. Software Ltd., a leading provider of comprehensive and
complete solutions primarily for the Life and Pension segment of the
Insurance industry. FIS markets its solutions in the UK, France,
Spain, South Africa, Australia, Greece and in Israel.
Transtech Control Ltd., is a leading developer of monitoring,
control, management and guidance systems for airfields of all sizes.
Transtech's solutions are in use in about 100 international, domestic
and military airports worldwide, including major airports in the
United States, all major airports in China and many other countries.
F.T.S. Formula Telecom Solutions Ltd., a leading telecom customer
care and billing solution provider for wireline, wireless and
convergent operators. Formula Telecom has recently closed new deals
in Germany, the Far East and Eastern Europe.
Babylon Ltd., a leading provider of single click information access,
translation and conversion software. Babylon currently has over
10 million registered users, growing at a rate of 15,000 new users a
day. Babylon has also successfully penetrated the corporate market,
providing a solution which unifies the access to all information
sources (e.g. CRM, ERP), enabling concise information to be extracted
in real-time, and instantly delivered to Babylon's desktop tool.
Clockwork Solutions Ltd., employs its proprietary SPAR(TM) predictive
modeling technology and its extensive, multi-industry experience to
reduce asset ownership cost. Clockwork is a leading services and
applications provider of Asset Management Solutions over the entire
life cycle of complex systems and their logistical and operating
environments. Clockwork customers are large industrial, chemical,
government, and military/armed forces organizations world wide.
Formula Systems (1985) Ltd. (Nasdaq: FORTY - News):
Formula Systems (1985) Ltd., is a global information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and providing computer-based business solutions.
Formula Vision Technologies (F.V.T.) Ltd. (TASE: FVT)
Formula Vision Technologies (F.V.T.) Ltd., is a managing, holding and investment company, holding interest in approximately 15 privately held IT companies with innovative, proprietary technologies and solutions targeting international markets.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements made in this press release that are not historical facts are forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the company's products, dependence on strategic partners, integration of new business, successful implementation of Formula's products, economic and competitive factors, international market conditions, management of growth, technological developments, the ability to finance operations and other factors which are detailed in Formula's Securities and Exchange Commission filings, including its most recent report on Form 20-F. Formula undertakes no obligation to publicly release any revision to any forward-looking statement.
 
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