GIVATAYIM, Israel-Nexus Telocation Systems Ltd. announced it will acquire assets and operations of its marketing partner, Global Wireless Holdings Inc.
GWH was licensed to commercialize Nexus’ technology and applications in developing countries in Asia and Latin America and recently launched an operation in Argentina. Under their agreement, Nexus will purchase ownership of GWH’s Argentina operations and rights to GWH’s other business assets and opportunities. In return, Nexus will transfer $.7 million and 500,000 ordinary shares to GWH.
“We believe that the incorporation of GWH marketing assets into Nexus’ global operations will be maximized under Nexus and will expand Nexus’ business activities,” said Shlomo Sadowsky, president and chief executive officer of Nexus. He added, “Since our planned budget for the year 2001 does not include any substantial orders from GWH (apart form Argentina), the loss of GWH’s marketing assistance will not affect our expected operational results for year 2001.”
