Five years after a $82 million IPO, Jungo sells its business for just $300,000
Israeli driver-monitoring startup will become a stock market shell after transferring its operations to controlling shareholder Ophir Herbst, while retaining roughly $9.8 million in cash.
Five years after going public at a valuation of NIS 250 million ($82 million), Junngo Connectivity is selling its operating business for just $300,000 (about NIS 915,000). The company, which develops software that uses in-car cameras to analyze driver behavior, has agreed to sell its entire operating business to its controlling shareholder, Ophir Herbst, for the nominal sum. Once the transaction is completed, Jungo will effectively become a stock market shell, a publicly traded company with no operating business.
Herbst, who owns 87.8% of Jungo and also serves as chairman, submitted the offer on July 9. An independent committee appointed by the company's board concluded that the proposal was fair.
Under the agreement, Herbst will acquire all rights to Jungo's products, including its two flagship platforms, VUDRIVER and CODRIVER. These camera-based systems monitor the vehicle's interior to detect smartphone use and other forms of driver distraction, as well as signs of intoxication, fatigue, or drowsiness.
Despite being positioned as the company's core growth engines, the two products accounted for just 7% of Jungo's revenue, according to its latest financial statements. The remaining 93% comes from WINDRIVER, an older software development tool that is not based on camera technology. In other words, despite years of investment, Jungo has yet to generate meaningful commercial traction for its flagship driver-monitoring technology.
The operating business will be transferred together with the company's employees but without liabilities, other than employee-related obligations. Jungo's CEO is Ofer Suhami.
Jungo reported a NIS 6 million ($2 million) net loss in 2025, similar to its loss in 2024. The company has shareholders' equity of approximately NIS 30 million ($9.8 million), with a cash balance of roughly the same amount. That cash will remain in the public company after the sale of the operating business.
In explaining the transaction, Herbst told investors that "after the transaction is completed, the company's cash burn will be significantly reduced, and a substantial dividend distribution will be possible." The statement suggests that a significant portion of the cash remaining in the company could be returned to shareholders following the sale. Jungo also holds a tax ruling allowing it to distribute dividends of up to $5 million even if they are not paid out of retained earnings.
Jungo Connectivity, which is currently valued at approximately NIS 23 million ($7.5 million) on the Tel Aviv Stock Exchange, traces its roots to the original Jungo company, which was sold to NDS in 2006 for $108 million. NDS was later acquired by Cisco, after which the business was spun out and eventually became an independent company again.
The company returned to the Tel Aviv Stock Exchange in July 2021, during the boom in technology IPOs, when many young companies listed before establishing sustainable profitability. Five years later, Jungo is exiting the operating business altogether, leaving behind only its cash and public listing.
