SuperCom takes over Alvarion for $2 million

26 June, 2016

Once, Alvarion was a $1.6 billion company, but went bankrupt in 2013. SuperCom negotiates the acquisition of Alvavarion’s public shell. The goal: building a new IoT security brand

Once, Alvarion was a $1.6 billion company, but went bankrupt in 2013. SuperCom negotiates the acquisition of Alvavarion’s public shell. The goal: building  a new IoT security brand

Arie Trabelsi, CEO of SuperCom

Israeli SuperCom acquired Alvarion for a mere $2 million. Alvarion was once one of Israel’s leading high-tech companies and a global leader in the field of WiMAX. The company went bankrupt in 2013 and was appointed a Liquidator. Today, the former giant is marginally involved in the mobile networks field.

SuperCom will pay $1 million in cash and an additional earn-out of up to$1 million during the next two years, mainly based on sales from the Alvarion division. Additionaly, SuperCom is negotiating the acquisition of Alvarions public shell, which was sold during the company’s liquidation as is now traded in OTC. If SuperCom is successful in buying Alvarion’s shell, it could merge its activities into the public shell, and return Alvarion to NASDAQ trade.

Alvarion was founded in 2001, as a result of BrezzeCom’s and Floware’s merger. The company was active in the wireless communication field. In 2013 it had an estimated market cap of $1.6 billion, employing more than 1,000 workers. The failure of WiMAX technology in to establish itself in the mobile market and the adaptation of the concurring LTE standard brought the company into dire straits. Alvarion rapidly declines, until filing bankruptcy in 2013 after failing to pay its debts to American investment bank SVC. SuperCom has made a previous attempt to take over Alvarion during its liquidation, but the company was sold to Valley Telcom for $38 million. According to SuperCom’s announcement, Alvarion has an average annual revenue of approximately $8 million with gross margins of more than 50%.

IoT security

SuperCom is a provider of traditional and digital security solutions, machine to machine communication technologies (M2M) and cyber security solutions. The company developed the mobile phone security system SafeMobile. SuperCom aspires to extend its activities into the Secure Internet of Things (SIoT) field, combining its M2M solutions with Alvarion’s services in fields such as smart home, smart hospital, connected campus and connected organizations. The takeover of Alvarion will provide SuperCom access to the former giant’s distribution networks and large customer base, counting more than 25,000 in 95 states, as well as to utilize the still strong brand.

“This synergistic acquisition is in line with our mission to make the world safer, more secure and more connected, and further extends SuperCom’s range of capabilities into new markets, distribution outlets, products and services,” commented Arie Trabelsi, CEO of SuperCom.

SuperCom’s share is traded according to a market cap of some $59.7 million. The company’s share has lost almost 70% of its worth over the last 12 months. In the last 9 months of 2015, its revenues totaled $21.2 million, and its net profit was $4 million. The company will publish its earnings report for q1 2016 by the end of this month (June).

Share via Whatsapp

Posted in: Business , News , Telecom and Communication , Wireless