Dmatek: The HomeFree Business

The case study describes the choices of Dmatek, an Israeli based company in the field of electronic monitoring, that is experiencing rapid growth. Dmatek faces two decisions: 1) whether to spin off its subsidiary HomeFree, a wireless resident monitoring solutions provider, and 2) whether to shift the focus of the HomeFree business from B-to-B to B-to-C.

The case can be used to illustrate the criteria to use when making a spin-off decision. It also illustrates more general governance issues common to high growth businesses. Lastly, the case can also be used to generate discussion the issues inherent to refocusing a business from B-to-B to B-to-C.