Marlin Equity Partners buys Israeli co QualiTest

The US investment fund has bought a controlling stake in the software testing company, at a company value of NIS 300 million.

Marlin Equity Partners, a US investment fund managing over $3 billion in assets, is acquiring a controlling interest in QualiTest at a company value of NIS 300 million.

Founded in the 1990s by CEO Ayal Zylberman and president and CTO Eli Margolin, QualiTest is jointly controlled by its founders and Kedma Capital. As part of the deal, Marlin will acquire all of Kedma's 50% stake and that of Margolin. Zylberman will continue as CEO after the acquisition, and remain a significant shareholder in the company.

QualiTest is the largest software testing company in Israel and the second largest in the world (of those doing only software testing). In addition to business in Israel, the company has branches in the US, the UK, and India, and employs over 2,000 staff. QualiTest's annual revenue totals over NIS 350 million, and has been growing in recent years as a result of both organic growth and the acquisition of companies.

Kedma Capital invested in QualiTest in 2011, when the latter's annual revenue was NIS 100 million. Managed by founding partners Uri Einan, Gilad Shavit, and Gilead Halevy, Kedma's acquisition of 50% of QualiTest was at a company value of NIS 45 million. This exit comes on top of other successful exits by Kedma in recent years in Danel (Adir Yehoshua), Sapiens, and Marina Galilee Mushrooms.

Published by Globes [online], Israel business news - https://en.globes.co.il/en/ - on September 13, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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