Tamir Fishman Venture Capital (TASE: TFVC) again included in its latest financial report a detailed valuation of its fabless telecommunications semiconductor portfolio company CopperGate Communications Inc. BDO Ziv Haft CPA valued CopperGate at $124 million at the end of March 2009.
CopperGate, founded in 1999, develops processors for home networking solutions over coaxial and telephone wires. The company's solutions can achieve transmission speeds of up to 300 Mpbs, designed for IPTV, broadband, and Triple Play services.
In contrast to previous valuations for CopperGate published by Tamir Fishman, this time BDO Ziv Haft disclosed scenario assessments by CopperGate's management about the company's future strategic direction. BDO Ziv Haft cites CopperGate's management as saying that there is a 15% chance of an IPO at a company value of $250-500 million within 18 months. Under this scenario, BDO Ziv Haft estimates CopperGate's current value at $270 million.
Under the second scenario, CopperGate's management believes that there is a 25% chance that the company will be acquired within 12-24 months at a company of $150-250 million. Under this scenario, BDO Ziv Haft estimates CopperGate's current value at $162 million.
Under the third scenario, CopperGate's management believes that there is a 55% chance that the company will stay independent; i.e. not go public or be acquired. Under this scenario, BDO Ziv Haft estimates CopperGate's current value at $76 million.
However, the likelihood that CopperGate's venture capital investors - Tamir Fishman, Carmel Ventures, Evergreen Venture Partners, and Motorola Ventures, will agree to the company keeping its present status indefinitely, thereby foregoing a return on investment through an exit, are quite remote.
Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009