CA Inc. (NYSE: CA) today announced that it is acquiring Israeli identity and role management solutions developer Eurekify Ltd. The companies did not disclose the terms of the deal, but sources believe that the price tag is $30-40 million.
The two companies already collaborate and they expect to close the deal by the end of the month. Ra'anana-based Eurekify's operations will be integrated into CA's business.
Eurekify director Dr. Ron Rymon founded the company in 2002. The CEO is Azi Cohen, who was previously CEO of Aduva and SCP Systems. Eurekify was established at Incentive Incubator Ltd. in Ariel. Peregrine Ventures owns the incubator and provided the company with $500,000 in seed money. Roni Einav, a company director and founder of New Dimension, is also an investor.
Eurekify targets one of the most sensitive areas in information security and computer infrastructure management - identity and access management (IAM) of user applications and enterprise resource management (ERM). The large number of software applications and frequent changes at large enterprises has made the management of authorization of employee access to information and applications a very complex task, especially given increasing regulatory requirements. Eurekify has developed an engine that aims to automatically align a procedure or person's access to his job at the enterprise.
Regarding the current business climate, Cohen said, "We were founded during one crisis, which we survived. If we were to remain alone, we'd survive this crisis too." He said that the company was sold in order to become part of a large corporation that could leverage sales. "We want to reach every enterprise in the world with more than 1,000 employees, which is hard for a company of our size. It can be assumed that every successful software company at some point tries to approach large software companies that have the capability to make large-scale sales," he added.
Eurekify and Peregrine Ventures declined to disclose how much money has been invested in the company. Peregrine general partner Gil Weil said, "We're pleased by the amount of money we've made and by the return we've brought our investors."
Eurekify raised several million dollars from Peregrine in the last financing round in early 2008. The amount guarantees a fairly high return on investment for Peregrine's large shareholders. Peregrine raised a new $40 million fund in 2007, after fully investing its first $15 million fund, which it raised in 2001.
Eurekify is CA's fourth acquisition of an Israeli company and its eighth acquisition of a company that has activity in Israel. Last month, CA acquired IDFocus Ltd. for an undisclosed amount. CA acquisitions include XOSoft in 2006, as well as Abirnet and Security-7 in 1999.
Published by Globes [online], Israel business news - www.globes-online.com - on November 13, 2008
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