"There is a future in Israel's IT market, and there's a lot to do in it. Ness Israel was the dominant player for years and it should again focus on it," said Hilan Tech Ltd. (TASE: HLTC) controlling shareholder and CEO Avi Baum, following the company's acquisition of Ness Technologies Israel Ltd. for $42 million from Citi Venture Capital International (CVCI). The net sale is $32 million, because the deal states that Ness Israel must have $10 million in working capital at the closing.
When the deal is closed, Ness Israel CEO Shachar Efal will acquire 10% of the company. He resumed his post in 2013, after a previous stint in 2005-08.
The acquisition will greatly boost Hilan Tech's business. Ness Israel has an annual turnover of NIS 700 million, compared with Hilan Tech's revenue of NIS 430 million in 2013. Ness Israel has 2,500 employees, five time Hilan Tech's workforce of 500.
Ness Israel is part of Ness Technologies, which CVCI acquired three years ago. Ness Israel has gone through hard times lately; earlier this year, "Globes" reported that its shareholders had to inject NIS 50 million into the company and make cutbacks in it.
Published by Globes [online], Israel business news - www.globes-online.com - on June 22, 2014
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