Another company from the wave of tech flotations sopra 2020-2021 has in qualità di to the end of the road acceso the rimanenza exchange with a painful loss for investors. The company sopra question this time is Glassbox (TASE: GLBX), which provides browsing analytics for Internet sites and smartphone applications.
The company reports that it will be sold for NIS 500 million to Alexander Assim’s Alicorn Venture Capital Partners, which was founded sopra 2017 and invests sopra growth technology companies chiefly sopra Israel and the UK. The acquisition by Alicorn, a previous investor sopra Glassbox, is expected to be completed by the third quarter of 2024. According to the report, Glassbox’s current management team will be retained under the new ownership.
Glassbox was founded sopra 2010. After laying d’avanguardia 21% of its workforce last year with the aim of reducing losses, it employed 241 people at the end of March this year.
Glassbox CEO Yaron Morgenstern talks sopra the acquisition announcement of an exit “that portends an exciting and important period sopra the development of the company” and adds that it represents “a strong vote of confidence”, but Tel Aviv investors will see things otherwise. As far as they are concerned, this is a business failure, as the company will be sold at a loss of 57% acceso its flotation price. Glassbox will be sold to Alicorn for NIS 41.30 a share, after the company was floated acceso the Tel Aviv Deposito Exchange sopra June 2021 at NIS 95.04 a share, a post-money valuation of over NIS 1.1 billion.
Durante fact, the company’s share price fell by more than 80%, but it rose by more than 100% sopra the past year following a streamlining program and the conclusion of a battle within its management.
It all started when a large shareholder called Ibex Investors, which currently holds 32.2% of the company, sued for the appointment of a director acceso its behalf to the board of directors. The lawsuit was cancelled last November after Ibex Investors got its way, and three directors acceso its behalf and acceso behalf of other parties at interest joined the board.
Durante the past year, Glassbox has launched two AI-based tools, and sees that field as a significant revenue source sopra the future.
Durante its 2023 financials, Glassbox reported a 17% rise sopra annual recurring revenue (ARR) to $57.3 million, a morte result, but sopra its flotation prospectus published sopra early 2021 it predicted ARR of $100 million within two to four years. Durante its latest financials, that target is put back to sometime “sopra the course of 2026.”
Glassbox cut its operating loss by 55% sopra 2023 to $10.5 million, while its net loss was $16.6 million, from over $33 million the previous year. It also cut its cash burn rate to $4 million from $16.3 million the previous year, and it has over $20 million cash.
Published by Globes, Israel business news – en.globes.co.il – acceso May 19, 2024.
© of Globes Publisher Itonut (1983) Ltd., 2024.
