There have been developments in Israel’s information security market. Comsec Consulting Ltd. (TASE:CMSC) last night notified the Tel Aviv Stock Exchange (TASE) that it acquired 42.5% of Avnet Data Security Ltd., considered its main competitor in the local information security consultancy market, for NIS 5.2 million. Comsec is now carrying due diligence on Avnet, and the deal is expected to be closed within a month.
Comsec is one of Israel’s oldest information security companies, providing information security products and services. The company is one of Check Point Software Technologies Ltd.’s (Nasdaq: CHKP) three distributors in Israel, which generates most of Comsec’s revenue. Comsec is controlled by chairman and CEO Nissim Bar-El with a 43% stake, and his wife Cohava Bar-El, with a 17% stake. Aladdin Knowledge Systems Ltd. (Nasdaq: ALDN; TASE: ALDN) is a noteworthy party at interest in the company, with a 7% stake, and Comsec distributes Aladdin’s e-Safe anti-virus product in Israel.
Comsec did not say how it would finance the acquisition in its notice to the TASE, but the company had NIS 10.5 million in cash as of the end of 2005, which it can use for this purpose. Comsec benefited from rising demand for information security products during 2005, and posted a 20% rise in sales to NIS 63 million.
Comsec is acquiring Avnet in order to expand its information security consultancy ability. Founded in 1995, Avnet’s core business in information security advice to Israeli and foreign customers.
Published by Globes [online], Israel business news - www.globes.co.il - on April 17, 2006
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