Computer giant IBM (NYSE:IBM) may acquire Israeli start-up Sphera Corporation. Sources inform ''Globes'' that an IBM delegation is now in Israel to review an acquisition of the company.
Founded by Shlomo Solomon in 1998, Sphera develops software solutions for hosting applications on server farms. The company’s products help deliver various enterprise applications by Internet service providers (ISPs). IBM has a number of huge centers around the world, which host enterprise applications on farms with thousands of servers. IBM is one of Sphera’s largest customers.
Sphera has developed a platform that helps automate applications for customers. The company’s customers include IBM, BellSouth (NYSE:BLS), NTT-ME, So-Net (Sony’s ISP in Japan), Japan Telecom, and Mitsui & Co. Ltd. (TSE:8031).
Sphera has raised $48 million to date. Investors include Gemini Israel Funds, Jerusalem Venture Partners (JVP), Bank of America Equity Partners, CSK Venture Capital, Reuters Venture Capital, TLcom Capital Partners, and Vision Capital.
Less than a year ago, Sphera was restructured and it now has 70 employees in Israel, the US and Japan. The company was one of Israel’s most promising start-ups, but fell into difficulties during the high-tech bubble. Michael Gold was appointed CEO 18 months ago. His previous posts included Qwest senior VP Internet Products and president and CEO of Vicorp, Qwest's software subsidiary.
Published by Globes [online], Israel business news - www.globes.co.il - on May 8, 2006
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