FIMI buys control of MMD Smart in $55M deal

What's the deal? FIMIDealroom has a profile for this one. Try Dealroom → is acquiring a 55% controlling stake in communications technology company MMD Smart for approximately $55 million. Most of the money goes into the company, with the rest going to its two founders. The deal values MMD Smart at $100 million.

What does MMD Smart do? Founded in 2008, the company enables global businesses to communicate with customers across multiple countries at once and to switch between telecom operators in different markets. Its customers include telecom and mobile operators, technology companies, digital marketing firms, app developers, and call centres.

The numbers: MMD Smart posts annual sales of about US$153.5M and is profitable. It employs more than 200 people across Petah Tikva, Bulgaria, and Singapore.

What's the endgame? FIMI's investment will fund expansion into additional countries and accelerate growth. The firm said it plans to work with management on "the expansion of its global activity" and deepening ties with existing and new customers.

MMD Smart is owned by chief executive officer Arie Frenklakh and his partner Leonid Rubanov.

The signal: A profitable, cash-generating firm drawing a control-stake buyout from a private equity fund reflects investor appetite for established, revenue-backed businesses over speculative bets — with the capital aimed squarely at geographic expansion.

Read more: calcalistech.com

Image credit: Patrick Bombaert