Israeli investor picks up 4RF

CEO Ian Troughton says Fortissimo is a perfect partner for the company. Photo / Mark Mitchell

Fortissimo Capital, an Israeli private equity group, has acquired 4RF for an undisclosed sum, allowing the award-winning Wellington microwave radio products developer to continue its growth path after its holding company was forced into receivership.

The takeover would allow 4RF to hire workers and accelerate product development and sales worldwide, the company said.

"We're ecstatic. They are the perfect partner for us," chief executive Ian Troughton said. "The key thing is that we have an investor that wants to grow the business considerably and has huge growth ambitions for us."

Troughton said Fortissimo wanted to keep existing workers in place and he would stay on leading the company.

Fortissimo is based in Rosh Ha'ayin, Israel, and its investments include Nasdaq-listed Soda Stream International and Afimilk, which makes computerised systems for dairy farms and herd management, according to its website.

It has nearly US$500 million ($615 million) under management. Its founder and managing partner is Yuval Cohen, a Harvard-educated venture capitalist.

Troughton and various family interests held shares in 4RF Communications, which was placed in receivership in April after failing to reach agreement on restructuring $5.5 million of convertible notes. Other shareholders included Australia's Carnegie, Wylie and Orion New Zealand, an investment company owned by Christchurch City Council and Selwyn District Council.

At the time of the receivership, the 4RF operating company was placed in a separate vehicle to continue operating while options were investigated to sell the business or find new capital.

The proceeds of the sale of the operating company will allow receivers to make distributions to 4RF Communications' creditors.

4RF had revenue of $20.4 million in the year ended March 31, 2010, and made a net loss of $820,000, the latest accounts filed with the Companies Office show.

Its products include its Aprisa SCADA point-to-multipoint radio for oil, gas and utility companies and a point-to-point microwave link product.

ANZ National is owed $4.1 million by 4RF Communications, according to a report from receivers PwC. The company has won local and bank-sponsored export awards and received capital funding from the government-backed Tech NZ fund.