Company Excel Solutions Continues to expand its activities in the field of marketing and sales of communication equipment to telecom operators. Today, the company reported that it has signed a memorandum of principles that does not require the purchase of 100% of the shares of Data Tech, from the hands of Rafek Communications and Infrastructure.
In exchange for the acquisition of full ownership of Data Tech, Excel will allocate toRef Communications owns 17 million shares, with a current market value of NIS 26.4 million. According to Excel, this is a share of 12.47% of its shares after the completion of the allotment.
In addition, subject to Data Tech’s milestones regarding the continuation of Data Tech’s contract with the American company Cisco, Excel will allocate to Rafek Communications during 2024 and 2025 up to an additional 4 million shares with a current market value of NIS 6.2 million, as well as up to 3.5 million convertible options. Excel at a price of NIS 2.55 per share (compared to the current price of NIS 1.55 per share).
Markets Cisco products
Data Tech is engaged in the distribution and supply of communication equipment, servers, cloud solutions, dedicated software and video and telephony systems. In this context, Data Tech markets, among other things, the company’s products Cisco , And this by virtue of a renewable distribution agreement.
Data Tech Advanced Solutions, specializes in the distribution of communications products and information technology, is a leader in providing design services, construction and maintenance of innovative solutions in the fields of Internet of Things (IoT). Data Tech has been operating for over 15 years as a leading distribution company of the communications giant Cisco Systems and, through hundreds of marketers, provides the manufacturer’s range of technologies to all sectors of the economy.
Since 2018, Data Tech has been distributing a variety of Japanese Fujitsu solutions, including workstations, laptops, servers and storage solutions. In addition, Data Tech is the exclusive distributor of communications products from Linksys, which specializes in wireless solutions for home and office, providing leading solutions from the worlds of cyber protection and information security.
According to Rafek’s financial statements, Data Tech’s revenues in 2020 amounted to NIS 84 million and its operating profit, net of payments to owners, amounted to NIS 5 million. The transaction is subject to completion of mutual due diligence and other conditions accepted in such transactions.
“Data tech activity will be a significant growth engine”
At the time of the announcement, Ronen Shor, CEO of Excel Solutions, said, “We continue to implement the company’s mergers and acquisitions strategy and this time, unlike previous acquisitions, it is a 100% share capital acquisition of Data Tech, a company with significant revenue and handsome profitability. The acquisition will significantly expand the group’s activities in the fields of cyber, telecom and IoT (Internet of Things, etc.) along with an asset in the form of a distribution agreement with communications giant Cisco Systems, a variety of Fujitsu solutions and more. “
Schur added that “Data Tech’s activity is very synergistic with the activities of the other subsidiaries in the group and adds another significant growth engine to them on the way to achieving Excel’s growth goals.