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The Israeli electro-optical company ColorChip was about to sell $ 300 million to the Chinese company Sanan Optoelectronics.
Negotiations on the sale of $ 300 million to a Chinese company, ColorChip, based in Yokne & # 39; am, have come to an unfortunate end: negotiations have failed and the company will be forced to lay off half of its workforce. He currently employs about 200 people and letters summoning employees selected for layoff for a pre-termination hearing were sent yesterday. ColorChip declined to provide additional details or comments. A source close to the company said the allegations that she was going out of business were unfounded and that she continued her business as usual, supported existing customers and was working on developing new products. The source said that the current measures were a process of rationalization following the situation that had occurred and that this was part of the cyclicality that characterized the sector that currently makes it necessary to lay off workers.
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Last August, ColorChip was about to finish negotiations on a lucrative exit with the Chinese company Sanan Optoelectronics, which is listed on the Shanghai Stock Exchange with a market capitalization of $ 13 billion. Sources said, however, that the publicity given to the agreement had undermined the negotiations and led to the withdrawal of Chinese society. No confirmation was obtained from ColorChip or Sanan.
ColorChip has developed high bandwidth electro-optical components for data transmission in large enterprise data centers. Its main investors are BRM of Eli Barkat, Moshe Lichtman, and IGP (Growth Partners for Israel) of Haim Shani, Gemini Israel Ventures, Viola Credit and Vintage Investment Partners. Over the years, the company has raised $ 97 million. It raised $ 37 million in April 2017. ColorChip was founded in 2001 by Eli Arad, Vice President of Research and Development, Shimon Eckhaus, and Professor Shlomo Ruschin. The CEO of the company is Yigal Ezra.
Posted by Globes, Economic News in Israel – www.globes.co.il – December 24, 2018
© Copyright Globes Publisher Itonut (1983) Ltd. 2018
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Yigal Ezra Colorchip Managing Director Photo: PR
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