Israel-Chinese intellectual-property bank makes acquisition

Maiden local hi-tech acquisition made; IP Bank acquires intellectual-property rights to advanced technology of two local companies, Pulsar and Ghost.

INFINITY GROUP managing partners 311 (photo credit: Koby Koenkas)
INFINITY GROUP managing partners 311
(photo credit: Koby Koenkas)
The Israeli-Chinese investment fund pioneer Infinity Group hosted a ceremony in Tel Aviv on Thursday at which its IP Bank acquired the intellectual-property rights to the advanced technology of two local companies, Pulsar and Ghost.
It was the first such purchase since Infinity established the IP Bank in September to acquire intellectual property from Israel, and from other countries, for use by Chinese companies.
Infinity founding partner Amir Gal-Or said the deal “demonstrates IP Bank’s active and successful implementation of one of its defined missions: to identify and license advanced technologies and proven IP that will service the needs of the growing Chinese market and help Chinese companies to better compete domestically and internationally.”
Although these initial deals were struck with Israeli companies, the IP Bank would not be limited by borders, Gal-Or, a former IAF combat pilot who today spends the majority of his time in Hong Kong and mainland China, told The Jerusalem Post on the event’s sidelines.
“Actually, in some aspects it’s easier to do this outside of Israel,” he said. “But this is our home town, so we start here.”
The terms of Thursday’s acquisitions were not disclosed.
Ghost technology is a pioneer in cloud computing for the end user. It has Web products for end-user cloud computing, including file storage, apps, desktop in a Web page, sharing, media, sync client and mobile access.
Pulsar welding provides manufacturing solutions that enable companies to manufacture products using a wider range of materials more efficiently.
The idea for the IP Bank rests on the premise that many Israeli hi-tech startups struggle to make money in the domestic market because it is too small and because production is too expensive.
After purchasing intellectual-property rights, Infinity Group then sells or licenses those rights to Chinese companies in which it invests.
IP Bank is one of the controlling shareholders in Maayan Ventures, a chain of technology incubators that is publicly traded on the Tel Aviv Stock Exchange and has offices in Israel and China. Maayan is licensed by the Chief Scientist’s Office of the Industry, Trade and Labor Ministry and invests in hi-tech companies at the entry stage. It has an existing portfolio of about 50 companies in the areas of communications, life sciences, software, materials, homeland security and clean technology.
A senior-level delegation from the Suzhou Municipal People’s Government and the Suzhou Industrial Park, close to Shanghai, where the IP Bank is headquartered, also attended the ceremony on Thursday.
Chinese Ambassador to Israel Zhao Jun said Infinity Group’s entrance into the Chinese market in 2004 and its establishment since then of 10 jointventure funds in major cities, including Suzhou, was “a great leap forward” for economic relations between the two countries.
“The successful combination of Infinity and Suzhou is not an independent case,” he said, “but a snapshot of the fast-developing economic relations between the two countries that aim at reciprocity and mutual benefit.”