Babylon forgoes IPO in U.S., focuses on ironSource merger

JERUSALEM Sun Sep 22, 2013 4:02am EDT

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JERUSALEM (Reuters) - Israeli translation software provider Babylon (BBYL.TA) has opted out of a public offering in the United States, saying it is instead focusing efforts on a potential merger with software distribution firm ironSource.

Babylon said on Sunday it told the U.S. Securities and Exchange Commission it was withdrawing a draft prospectus it had submitted in November 2012. It had filed for an initial public offering for up to $115 million.

"This follows company announcements that it is currently investing efforts in holding negotiations for a merger with ironSource," Babylon said in a statement to the Tel Aviv Stock Exchange, where it is already listed.

IronSource is an online and mobile software distributor.

Israel's financial daily Globes said the companies together could have an estimated value of $1 billion.

In April Babylon signed a four-year cooperation agreement with Yahoo Inc (YHOO.O) in the Internet sector, including on mobile devices. In 2012 Google (GOOG.O) was the main source of revenue for Babylon.

(Reporting by Ari Rabinovitch; Editing by Tova Cohen)

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