The acquisition is part of a new Elron strategy of investing in the field of information technologies.
Elron announced it has purchased 100% of US company ON Technology’s network management and security division, for $12 million in cash. The amount may grow to $13.5 million, depending on the division’s business performance for 12 months from the acquisition date.
The division purchased by Elron comprises 100 employees. The assets purchased include software products for LAN and WAN systems management, Intranet and Internet, and unique marketing and sales operation, aimed at Network managers in the Fortune 500 group of companies. The new division will be responsible for development, marketing and support of Elron software for management and protection of communications networks.
Acquisition of the division is part of the implementation of Elron’s strategic program in the field of information technologies. The program is based on entering specific software fields in the world market, and particularly in the US, and purchasing existing products, customer base and marketing and sales operations.