Hacktics to focus on anti-hacking product

The hacking specialist company is selling its consultancy business to Ernst & Young.

Information security company Hacktics Ltd. is splitting into two companies: it is selling its consultancy business to Ernst & Young Global Ltd., while retaining its product development business as a start-up. The company did not disclose the size of the deal.

Hacktics is a company of hackers. It hacks systems to find security breaches. Hacktics CEO Ron Porat, CTO Ofer Maor, and director Tal Mozes founded the company in 2004. According to Israel Venture Capital, it has raised just $3 million, and currently has 30 employees.

With the spinoff, Mozes and half the employees will go to Ernst & Young, and Maor will manage the start-up, which will continue development of the company's Seeker product. Porat is resigning his post, but will stay on as a shareholder and director of the start-up.

Porat told "Globes", "Hacktics has operated as a service company for six years. While doing business, the idea came up of developing a product that works in the same way, but renders the need for the service redundant."

From now on, Hacktics will install its Seeker product in clients' computer systems. Seeker will identify security break-ins, and document them on video. The company is installing the first Seekers in Israel, Europe, and the US.

"The switch from services to a product was natural," says Porat. "We devoted a lot to develop the product, and then we received the offer from Ernst & Young. For us, this is the ideal time to make a deal, especially as it's good for both parties. We can focus on the product, and Ernst & Young saw the great need for high-quality information security services."

Porat declined to say whether the profitability of the services business was more than the profitability from product sales. "Service depends on the quality of people and their output. The product should have greater potential because it's developed once, and if you do it right, there's a good product."

Hacktics will invest the proceeds from the sale of its consultancy business to further develop the Seeker. Porat says that the name is temporary, and that the company is seeking a new and catchier name." He added, "We'll be happy to get suggestions from "Globes" readers."

Published by Globes [online], Israel business news - www.globes-online.com - on January 18, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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