India's Connectiva Systems Inc. has acquired Israeli start-up Olista Ltd. for an estimated $20 million, in the latest acquisition of an Israeli company by an Indian firm. Olista will become Connectiva's Israeli R&D center, and will double its workforce.
The exit is not large, but Olista's investors probably will see a return on their investment. According to IVC, Evergreen Venture Partners, Gemini Israel Funds Kreos Capital, Costella Kirsch Venture Lending invested $15 million in the company, since it was founded in 2003.
Olista developed customer analysis software for mobile operators, but was never able to take off. In October 2008, it fired a third of its employees, and changed its business model, and won a $1 million contract with Spain's Telefonica SA (NYSE; IBEX: TEF; LSE:TDE) in the summer of 2009.
Six months ago, Olista approached US investment banks to help it find a buyer, and they found Connectiva.
In January, India's Tejas Networks Ltd. acquired Israeli carrier Ethernet solutions start-up EthOS Networks Ltd. (now Tejas Networks Israel) for an estimated $25 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 10, 2010
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