Israeli-Japanese fund Defta bought the controlling interest in

ComGates Communications

, hi-tech information company Dolev & Abramovitch reported yesterday.

Last week ComGates reported a 30% staff cut.

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In November 2000 ComGates took out a $6 million bridge loan from Defta and the Israeli venture capital fund Etgar (Challenge), ahead of its third financing round. The company hoped to raise $20 million at a company value exceeding $100 million.

ComGates was established in late 1998. It maintains a development center in Herzliya and sells through distributors in South Korea, China and Singapore. The company develops, designs, manufactures and markets next-generation communications infrastructure products.