US OmniSky acquires NomadIQ of Israel - Gilad Nass
US company OmniSky [OMNY:NASDAQ] a provider of services for palm top computer users, today announced the acquisition of Jerusalem-based start-up NomadIQ, in a share swap currently valued at $26.25 million, [$40 Million if all terms are met]. NomadIQ develops location-based applications.
Under the transaction terms, OmniSky will issue 2.5 million shares to NomadIQ shareholders. OmniSky committed itself to issuing one million more shares during 2001, provided NomadIQ meets the conditions and targets set in the agreement. Under the agreement, NomadIQ will become OmniSky Israel.
OmniSky provides content and e-mail to hand-held devices accommodating Internet surfing, such as palm pilots, Visor, and some palm top computers based on Microsoft operating systems. The company’s services are provided to US residents only in about 120 regions, covering a population of 160 million. The company is expected to break into global markets in the coming six months.
NomadIQ develops location-based applications for mobile devices. The company last week launched a cooperation with the Yellow Pages web site, through which users of the service will be able to receive information about various sites in Jerusalem and Tel Aviv. The company, founded in 2000 by Jacob Ner-David and Ari Gottesman, has about 50 employees. Ner-David will continue to manage the Israeli branch.
