IT services provider Ness Technologies Ltd. (Nasdaq: NSTC; TASE: NSTC) said today that it has bought a business intelligence (BI) consulting and implementation solutions and services company.
Ness has signed a definitive agreement to acquire Gilon Business Insight Ltd. Ness believes that the acquisition will add to its range of enterprise solutions, including ERP, BI and customer relationship management.
Ness will pay NIS 65 million, or about $17.5 million, for Gilon. Should Gilon achieve certain performance goals, Ness will pay an additional amount of up to NIS 9 million, or approximately $2.4 million.
In fiscal year 2009, Gilon generated revenues of about $22 million and was profitable. The acquisition is expected to be accretive for 2010, on a non-GAAP basis. As of the end of December 2009, Gilon had approximately 230 employees and it currently has 280 employees, mainly in Israel.
Gilon active chairman Avi Zeevi said, "We were fortunate to join forces with Gilon's founders and management to turn Gilon into the leading BI provider in Israel." Zeevi led an investment in Gilon on behalf of DPartners and Viola Group.
Gilon Business Insight is a business intelligence consulting group offering a wide array of BI solutions and services, including high-level strategic consulting, enterprise analytical services, industry-specific out-of-the-box solutions, strong on-time delivery and proven implementation capabilities. Gilon is headquartered in Israel and also has operations in Turkey.
Private equity fund D Partners is an affiliate of the Viola Group. It focuses primarily on growth opportunities in Israel. The D Partners funds have approximately $300 million under management.
Ness shares closed yesterday at $6.40, giving a market cap of $245.99 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2010
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