One1 Software Technologies, a subsidiary of Computer Direct, is buying Xpert Integrated Systems, a software and computer infrastructure company, for $1.55 million.
The transaction announced yesterday is pure egg on the face for Bezeq, which bought 15 percent of Xpert's shares at a pre-money company valuation of $50 million.
Actually, the buying price is just above $1.55 million, since One1 agreed to add the value of Xpert's cash, but the final amount will be adjusted based on commitments to employees and working capital.
One1 CEO Elded Bar-On agreed that the price is a far cry from the valuation at which Bezeq invested in August 2001.
A year before Bezeq came on board, Xpert raised $15 million from investors at a company value of $70 million. Since its founding, Xpert raised $24 million from investors, all of whom must be sorely disappointed by the transaction announced yesterday.
The acquisition remains contingent on due diligence and signature on a final agreement in April. One1 board and shareholders also have to officially sign off on the deal.
Xpert was founded in 1993 by Limor Schweitzer and Eran Wagner, who also founded XACCT, another company that disappointed investors, although not to the same degree as Xpert. XACCT had been expected to make a splash on Nasdaq, but would up being sold in early 2004 to Amdocs for $30 million, a fraction of its hoped-for valuation,
One1 is also involved in another deal. The company is buying the Bulgarian operations of Nir-Shor in order to obtain access to cheap programming power, which plans to utilize to compete against Indian data sweatshops.
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