IT management giant CA Inc. (NYSE: CA) has signed the agreement to acquire start-up Oblicore Inc. Sources inform "Globes" that under terms of the deal, which will be reported in the next few days, the remote server software company will be acquired for $25 million. The acquisition is CA's tenth in Israel. CA declined to comment on the report.
From the point of view of Oblicore's investors this is not a particularly successful exit because according to IVC Research, a similar amount of money - $25 million - has been invested in Oblicore since its establishment.
Oblicore was founded in 2000 by Erez Hendelman, Hezi Sheffer, and Oren Gampel. The company develops Service Delivery Management software to improve access to business applications stored on remote servers at enterprises and telecommunications providers. Oblicore has 40 employees. The sector has been enjoying growing demand in recent times.
Last summer CA made a strategic decision to enter the computer automation and virtualization sector to provide users with processing and memory resources, applications and content through remote access.
During a visit to Israel in November, CA president Michael Christenson said, "There are opportunities for quick growth in the market in the computerized sector, automation and virtualization and through acquisitions we will get there faster. Oblicore's investors include Concord Ventures, Jerusalem Venture partners, Platinum Neurone Ventures, TechnoPlus Ventures Ltd. (TASE:TNPV) and Shrem Fudim Technologies Ltd. (TASE:SFKT). Guy Gamzu invested in the company seed round, and David Azrieli invested in the first round in 2000.
Published by Globes [online], Israel business news - www.globes-online.com - on December 31, 2009
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