BluePhoenix Merges With Ateras In Share Deal To Form Modern Systems

October 20, 2014 | Software conversion company BluePhoenix Solutions, headquartered in Israel, will merge with Ateras Sophisticated Business Systems in a share deal to form Modern Systems. According to the deal, BluePhoenix will issue 6.2 million shares at a value of $22.7 million, a value that constitutes a third of its capital, to Ateras shareholders in exchange for Ateras’ entire capital. Reports found that the two companies had an aggregate of $14.3 million in revenue in 2013. BluePhoenix, founded in 1987 and formerly controlled by Formula Systems, has a NASDAQ market cap of $42 million and is set to downsize its Israeli office following the merger.