Servicesoft, Founded in Israel, Sold to Broadbase Software of US for $645 Mln

Servicesoft, created from the merger of two companies founded in Israel, planned to raise $75 million in April at a company value of $400 million.

Servicesoft has been acquired by US company Broadbase Software for an estimated $645 million. Broadbase paid 36.5% of its shares for the acquisition. Nasdaq-listed Broadbase’s market value yesterday stood at $873.1 million.

Servicesoft merged in 1999 with Balisoft Technologies, founded in Israel in 1997. Servicesoft developed and marketed platforms for Internet customer connections.

Servicesoft also has Israeli “roots”. Rosh Technologies was founded in Israel in 1984 by graduates of the Israel Defense Forces Intelligence Corps, through an investment by Elron and the Aetna Fund. The company’s activity was transferred to the US, while the R&D group remained in Mevasseret Zion, near Jerusalem. This group was later sold to Net Manage, and Servicesoft became a US company.

At the end of 1997, Elron held 26% of Servicesoft. Following dilutions resulting from private placements, Elron now holds approximately 5% of the company.

Servicesoft had scheduled a Nasdaq issue for April to raise $75 million at a company value of $400 million, but the plan was shelved when the stock exchange dived. Before the planned issue, the company reported revenues of $10.5 million for 1999. Servicesoft employs 600 staff.

Published by Israel's Business Arena on September 19, 2000

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