Swiss-Israeli tech company Sirin Labs, known mostly because of the Finney phone, is in final stages of a merger with Israeli security startup. The prospects of the deal are good and the changes may be massive. Sirin Labs is led by Moshe Hogeg and Kenes Rakishev. After the likely merge the main focus of the Labs may be changed, the Israeli “Globes” newspaper speculates.
Sirin Labs, the company which is behind the luxurious Finney crypto-smartphone has drawn the international attention in 2017. The product is available at the market. The majority of the capital needed to launch it was gathered through the ICO. Sirin Labs recruited stars and celebrities to promote the $999 smartphone. One of the stars was soccer player Lionel Messi.
The global ice age for the cryptocurrencies has definitively affected the sales and the perspective of the Finney and the Sirin labs as a whole.
Sirin Labs, founded in 2013, reported raising $255 million in financing in 2013-2017 in two rounds, in addition to its 2017 ICO. The price of the digital currency issued by the company (ticker symbol: SRN) has plunged 99% since reaching its peak in January 2018, according to figures from the CoinMarketCap website. Sirin Labs, which currently has 25 employees, laid of 15 of its 60 employees last April, as reported by “Globes,” and laid off an additional 20 since then. Nevertheless, according to Hogeg, if the merger goes through, Sirin Labs expects to increase its staff.
Hogeg confirmed yesterday to “Globes” that the merger talks had reached an advanced stage. Hogeg said that his partner in the Singulariteam group, Kazakh billionaire Kenes Rakishev, “visited Israel specially this week in order to close the deal to merge a small Israeli cybersecurity company into Sirin Labs.” If the merger materializes, Hogeg says, “It will enable Sirin Labs to expand its range of products to software, as well as hardware.”
Hogeg predicts that the deal will be finally signed within a few weeks. He said that the company with which negotiations are being held, which now has ten employees, deals in cybersecurity for organizations. If the merger goes through, the stores founded by Sirin Labs last year in London and Tokyo will continue to sell the Finney smartphone, but will engage mainly in cybersecurity. As Sirin Labs announced earlier this year, it does not plan to develop a new generation of Finney devices, and is now focusing on developing software in the sector. Meanwhile, Hogeg says, “Sirin Labs is continuing as usual, and is issuing updates of its smartphone.”