Looks like I am not the only one that believes in this company - From Globes: May 17, 1998 Sun-Thu at 18:00 (GMT+3)
Clal Industries Buys 10.7% of Fundtech for NIS 68 Mln
By Ami Ginsburg
Cal Industries yesterday took another step in line with its new policy, whereby it invests in stock exchange listed high-tech companies even without obtaining elements of control. The company bought 4.2% of the share capital of Fundtech from investment company Primavera of the YLR group for NIS 27 million. In addition, Clal announced it had agreed on the purchase of a further 6.5% of Fundtech's shares from other concerns for NIS 41 million.
All in all, then, Clal Industries will buy 10.7% of the shares in Fundtech for NIS 68 million (some $18.5 million). The purchases reflect a market value of $173 million for Fundtech, 20% below the company's market value ($216 million).
In contrast to other Clal purchases (such as Gilat Satellite Networks or BVR), this time, the Fundtech purchase was made when the shares were near their peak price. Fundtech was issued two and a half months ago on Wall Street at a price of $13 per share, and it closed last night at $21.2. The company raised $30 million n Wall Street in March in a $39 million issue that also included an offer for sale by shareholders.
Fundtech has developed a software system called Fed Plus for money transfers between banks, and last year posted significant revenue growth, the result of agreements with more than 100 banks throughout the US. The company ended 1997 with revenue of $8 million and a net profit of $636,000. In the first quarter of 1998, it had revenue of $3 million, and a net profit of $231,000. |
