Businessman Zvika Barenboim to Acquire Software Monetization Company Somoto
Barenboim will pay up to $50 million for Somoto, which develops online tools for software developers looking to monetize their freeware and shareware
A company owned by Israeli businessman Zvika Barenboim has agreed to acquire Tel Aviv-listed software monetization company Somoto Ltd. for up to $50 million, Somoto announced Sunday in a filing to the Tel Aviv Stock Exchange. Barenboim is the owner and co-founder of private surgical center N.a.r.a. in Tel Aviv suburb Ramat Gan.The buying company will pay a first payment of $36.72 million in cash, 20% of the sum through seller financing, an additional sum of up to $1.54 million within three months, and a final payment of up to $11 million within a three-year period, pending agreed-upon milestones. The deal is subject to the approval of Somoto’s board of directors in a meeting scheduled for next month.
Founded in 2009 and based in Tel Aviv, Somoto develops online tools for software developers looking to monetize their freeware and shareware. Somoto’s 75 employees will stay on with the company, Somoto said.
Somoto CEO Ben Garrun. Photo: Amit Sha'al
Somoto is currently trading at a market cap of around NIS 152,000 (approximately $42,640), representing a 58% rise over the past 12 months. Following the completion of the deal, Somoto intends to delist and become a private company.