Sources inform ''Globes'' that Jacada (Nasdaq: JCDA) has acquired Israeli start-up Anotar several million dollars, which the two companies denied. Well-informed sources said the estimates of the price were exaggerated, and that Anota would be acquired for less than $1 million, which has been shown to be correct. The price in fact is $640,000 in Jacada shares, plus an assumption of debts, and a further payment which will be based on future revenue.
Anota provides instant Internet connection solutions for legacy computer systems, such as mainframe and mini-computers, without the need for special software.
Jacada CEO Gideon Hollander told ''Globes'' that Anota was acquired because its products enabled organizations to rapidly make their business critical applications available for a web environment.
Jacada develops and produces mainframe integration and web-enablement solutions that translate computer codes into Java.
Hollander told “Globes” Anota would not be Jacada’s last acquisition this year. “We are negotiating to acquire two companies, one Israeli, in fields synergetic to ours. We also plan to announce four new products this year. We are not ruling out acquiring complete products from other companies. We aim to become a one-stop-shop for legacy systems.
“Anota developed a sophisticated emulator that can present the interface legacy systems on the web. There are currently 10-20 such companies, but after product testing, we found that Anota’s was the most advanced. In the past few weeks, we installed the product with several of our customers. They were astonished by the level of the technology. We also thought it preferable to acquire an Israeli company.”
Commenting on the price, Hollander noted that the current high-tech market climate has created an exceptional market for mergers and acquisitions. “We have cash reserves of $41.6 million. It is now cheaper to buy ready software than to develop it. In order to reduce marketing costs, we will put our products on the web. A company interested in a product will be able to download it for a trial period, before deciding whether to buy it,” he said.
Anota raised $4 million in early 2000 at a company value of $12.5 million, after money. Koor Corporate Venture Capital led the round with a $3 million investment. Other investors were Israeli fund eXseed and private investors. Anota was founded in 1999 by Yoram Nissenboim (formerly NetManage (Nasdaq:NETM) development manager), who left the company after two years to found Acceloop. Yaron Front then managed Anota until a year ago. Its current CEO is Cheli Aflalo-Karpel, who will now receive a senior position at Jacada. Yokne'am-based Anota has 15 employees, eight of whom will transfer to Jacada.
Jacada shares shot up 9.9% to $2 on Nasdaq yesterday, implying a $37 million market cap. The company's shares had fallen from a peak of $33 two-and-a-half years ago to a low of $1.56 in recent trading.
Published by Globes [online] - www.globes.co.il - on August 1, 2002