Chi­nese Fund Pri­mav­era in Talks to Ac­quire Iron­source for $1B

The Jewish Voice - - BUSINESS & TECHNOLOGY -

Is­raeli com­pany Iron­Source has re­ceived an of­fer from Pri­mav­era, the Chi­nese fund, which man­ages $2.9 bil­lion in as­sets. As re­ported by Jewish Busi­ness News, Pri­mav­era made an of­fer for $1 Bil­lion and the ne­go­ti­a­tions have been on­go­ing for two months. The fund ex­pected to bring one or two part­ners into the deal, if it should ac­tu­al­ize.

Iron­Source, founded in 2009, is a global dig­i­tal con­tent com­pany backed by Carmel Ven­tures. It of­fers mon­e­ti­za­tion and dis­tri­bu­tion so­lu­tions for app developers, soft­ware developers, mobile car­ri­ers, and de­vice man­u­fac­tur­ers. In 2013 it was listed in the Wall Street Jour­nal "Bil­lion Dol­lar Startup Club” as one of the top ‘20 hottest star­tups’. In 2015, it merged with Is­rael’s SuperSonic cre­at­ing Is­rael’s largest In­ter­net com­pany in terms of rev­enue and value. Iron­source has over 700 em­ploy­ees, half of which are ded­i­cated to Re­search and De­vel­op­ment. The com­pany’s rev­enues are gen­er­ated from the sale of ad­ver­tis­ing on the in­stal­la­tion soft­ware.

This is not the first time Iron­source has re­ceived of­fers from Chi­nese funds. Last year, CDH, which man­ages as­sets worth $19 bil­lion, ne­go­ti­ated but a deal was not reached. Some of Iron- Source’s share­hold­ers are in­ter­ested in cash­ing out. How­ever, an IPO on Nas­daq is not be­ing con­sid­ered be­cause Amer­i­can in­vestors are ex­pected to balk at the ar­eas in which the com­pany is en­gaged. Also US tech­nol­ogy com­pa­nies would not be good can­di­dates. Chi­nese in­vestors present as the most likely buy­ers.

Pri­mav­era has also re­cently been ne­go­ti­at­ing to ac­quire Netafim, the Is­raeli ir­ri­ga­tion com­pany. Last week, how­ever, the com­pany was sold to Mexi­cam, Mex­i­can coun­ter­parts for $1.5 bil­lion.

When asked to com­ment on the story, CEO and ma­jor­ity share­holder Tomer Bar-Zeev told Is­raeli pa­per Cal­cal­ist, “How many times can you write that AeroSource is ne­go­ti­at­ing to be sold to Chi­nese com­pa­nies? There are al­ways calls from Chi­nese bod­ies to buy the com­pany, and Pri­mav­era has also turned to us, but there are cur­rently no ne­go­ti­a­tions for sale with any one.”

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