Flash Networks has obtained a $2.5 million loan from the corporate banking division of a large international bank. De-Kalo Ben Yehuda Investment Bank, which advised on the transaction, refused to comment.

Flash Networks develops systems for data communications on wireless networks. In Septemeber 2003, in a share-swap deal, it bought Adjungo Networks (formerly Commagine) which develops systems for connecting WLAN and wireless networks. At the same time, Flash Networks completed a $2.5 million internal financing round, in which Evergreen, the main investor in Adjungo, participated. The round took place ata accompany value of some $15 million before money.

A year ago, Flash Networks raised $6 million. The annual revenue of the merged company is expected to amount o $89 million, and it is not expected to make a loss. In 2002, reports circulated to the effect that both companies would raise large sums. Flash Networks intended to raise $14 million, and Adjungo $12 million. Flash Networks also held merger talks with two companies in its field, Schema, and Speedwise.

The main investors in Flash Networks are the Giza, Vertex, and Etgar-Challenge funds, T-Mobile Venture Fund, and Bell Mobility Investments. The main investors in Adjungo are the Evergreen and Shalom funds.
Published by Globes, January 20, 2004