Cisco Systems (Nasdaq:CSCO) today closed the acquisition of Haifa-based start-up Actona Technologies.
Cisco will pay $100 million in cash, of which $82 million will go to the venture investors in the company: Fantine group, Evergreen Partners, Sequoia Capital Israel, and US-based Mayfield. The remaining $18 million will go to the company's employees and founders: chief scientist Prof. Israel Cidon, COO Dr. Ilan Kessler, and CTO Dr. Israel Ben-Shaul.
Other companies aside from Cisco were interested in Actona. This pushed up the price, and turned the sale into one of biggest exits of 2004.
Actona was founded in 2000. Originally, the company was set up to develop and provide Internet caching solutions. In 2002, the start-up was on the verge of shutting down.
At the company's lowest point, Evergreen entered and led a $7 million funding round. Original investor Sequoia Capital Israel also participated in the round. The founders also decided on a change of direction, and began developing data storage solutions. The company was saved.
Last month, Actona held a $10 million funding round, led by Mayfield. At the same time, Randy L. Ditzler was named president and CEO, and Mayfield managing director Peter Levine joined Actona's board.
Sources at the company say that the board of directors' contribution to the turnaround was critical. Other board members include Fantine partner Yoav Chelouche, Evergreen Partners partner Rona Segev-Gal, and Sequoia Capital Seed Fund partner Haim Sadger.
The Actona ActaStor file caching solution facilitates storage consolidation across the WAN. ActaStor drives storage, management and backup out of remote offices and into the data center.
Today's acquisition is surprising not only because of the company's history, but because it only made its first sale six months ago. Another surprise is the generous sum Cisco is willing to pay. Apparently, this is a strategic acquisition for Cisco.
Published by Globes [online] - www.globes.co.il - on Tuesday, June 29, 2004