US software company SolarWinds announced tonight that it was acquiring Israel company Samanage for $350 million cash. The acquisition is expected to close in the second quarter. SolarWinds is traded on the New York Stock exchange at a market cap of some $6 billion. This is the first time it has bought an Israeli company. It is expected to set up it first development center in Israel on the basis of Samanage.
Samanage, which was founded in 2007 by CEO Doron Gordon, provides a platform for managing information systems on the cloud using an SaaS (software as a service) model. It has raised some $69 million. Among the investors in the company are Viola Ventures, with the largest stake, the investment arm of Salesforce, Morgan Stanley's growth investment fund, and venture capital firms Gemini, Vintage, and Marker.
Gordon is a veteran entrepreneur. He was among the founders of software company Continuity, bought by Kedma Capital in 2016 for $160 million. Before that he was one of the founders of Always-On, sold for just $1 million in 2001.
Samanage has annual revenue in the tens of millions of dollars. It employs about 200 people, half in Israel and half in the US and Europe.
Samanage was represented by Advs Dan Shamgar, Shira Azran and Naomi Olmert from Meitar Liquornik Geva Leshem Tal and Advs Einat Katzenel and Hagai Sternberg from Katzenel Dimant.
SolarWinds was represented by DLA Piper and by Advs Chaim Friedland and Yehonatan Raff from Gornitzky.
Published by Globes, Israel business news - en.globes.co.il - on April 12, 2019
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