Jungo Sells Operations to Controlling Shareholder for $300,000 Five Years After $250 Million IPO

Jungo Connectivity, an Israeli company specializing in driver monitoring software using vehicle cameras, is selling its entire business to its controlling shareholder, Ofir Herbst, for $300,000. The deal, proposed on July 9 and approved by an independent committee, will leave Jungo as a publicly traded shell company without active operations. Herbst, who owns 87.8% of Jungo and serves as chairman, will acquire all rights to the company’s core products, VUDRIVER and CODRIVER, which monitor driver distraction and impairment through in-car cameras. However, these products currently generate only 7% of Jungo’s revenue, with the majority coming from an older product, WINDRIVER, a development tool not based on camera technology.

The transaction includes the transfer of Jungo’s business activities and employees to Herbst without liabilities except those related to staff. Jungo’s CEO is Ofer Sohami. The company reported losses of 6 million shekels in both 2024 and 2025, with equity and cash reserves around 30 million shekels each. Post-sale, the remaining cash will stay with the shell company, potentially enabling significant dividend distributions to shareholders, as Herbst indicated. Jungo also holds a court ruling allowing it to distribute up to $5 million in dividends regardless of profits.

Jungo Connectivity is the successor of the original Jungo, which was sold in 2006 to NDS for $108 million. NDS was later acquired by Cisco, and Jungo was spun off as an independent entity. Jungo returned to the Tel Aviv Stock Exchange in July 2021 amid a wave of tech IPOs, many of which went public before achieving sustained profitability.