CTMotion gearing up for merger with Wall Street firm - TheStreet

Israeli location-based systems company CTMotion is expected to complete a private placement in the millions within months, TheMarker has learned.

It will also be merging with a Wall Street-listed firm, company chief executive Hanoch Eshel told TheMarker.

The company, which makes and sells platforms for location-based cellular services, is meanwhile pressing ahead with its reorganization. That included trimming a quarter of its staff in March 2002, to adapt to the tough conditions in the cellular marketplace.

CTMotion is negotiating with several European and Asian cellular operators, Eshel said, which might adopt the company's system.

CTMotion is also acting to expand its product range, including to security products.

These days CTMotion is cooperating with U.S. firm Singlesoft (Nasdaq:SGSF) to develop a system that can manage roaming employees using their cellphones. The system will be based on the Israeli firm's Field View system.

Singlesoft is considered a world leader in location-based services. It is traded at a market value of $26 million. Its first-quarter revenues plunged by 37% to $3.9 million, and it recently fired about a third of its staff.

Among the users of CTMotion's Field View system are the Israeli mobile phone company Partner Communications (Nasdaq, TASE:PTNR, LSE:PCCD), and three mobile communications companies in Poland, France and Hong Kong.

CTMotion, established in 1998, employs 25 people. In March 2001 it raised $4 million from Japan's Nomura and other companies.