US company Protegrity acquired Israeli start-up Kavado at the end of last week. Protegrity is a subsidiary of Xcelera (OTCBB: XLACF). The acquisition price was not disclosed, but was probably a few million dollars at most.
Under the acquisition agreement, Kavado will operate Protegrity’s R&D center in Israel. The acquisition includes Kavado’s technology and remaining employees. Kavado laid off most of its employees several months ago, but some have been rehired following the acquisition.
The acquisition will enable Protegrity, which deals in information security and management, to diversify its product line. The merged company will have 300 customers in diverse markets. Following the acquisition, Protegrity will be able to offer its customers a complete basket of security products, including central information management and monitoring capability.
Protegrity president and CEO Gordon Rapkin said, “The acquisition of Kavado now gives us the ability to protect sensitive data wherever it resides in applications, databases, backups, and storage and across any technology infrastructure… we can help companies more efficiently meet regulatory requirements and reduce the escalating legal and financial risks associated with security breaches.”
Kavado develops information security technology and products to protect company websites. Founded five years ago, the company has raised a total of $18 million.
Published by Globes [online] - www.globes.co.il - on August 22, 2005