Globes, June 19, 2006
EMC buys Israeli co ProActivity
|The $30 million acquisition of the business process optimization company is EMC’s third buy in Israel in two months.
EMC Corp. (NYSE:EMC) today acquired another Israeli technology start-up: ProActivity Inc. Details about the acquisition have not been disclosed, but sources inform ''Globes'' that EMC paid $30 million in cash for the company. $17 million has been invested in ProActivity since it was founded. EMC has bought two other Israeli companies in the past two months: Kashya for $150 million, and nLayers for $50 million.
ProActivity is Israel Infinity Venture Capital’s eleventh exit within a year.. Israel Infinity Fund general partner Amir Galor said today, “Infinity invests in companies at the earliest growth stages, as well as in later stage companies. Infinity has recorded a return of over 100% on the ProActivity deal. This is an exciting year, rich in opportunities.”
ProActivity develops business process management solutions. The acquisition will enable EMC to provide its customers with a full chain of content management products.
Over the years, a slew of investors abandoned ProActivity. Infinity Venture Capital and Clal Industries and Investments Ltd. (TASE: CII) own 65% of the company, and its management and employees own 35% - an unusually large proportion. A source at the company said today that it had allocated additional shares to employees and management as investors abandoned it. “The management and Infinity led the company and believed in its capabilities.”
Galor declined to comment on the numbers, saying today, “We believe in ProActivity’s potential and in the power of its products. That’s why we supported it over the years, even when other investors chose to stop supporting it. Infinity continued to foster the company and contribute to its development until the successful exit. EMC is an international leader, and we’re pleased to see another Israeli company chalk up a success.”
Infinity Venture Capital manages $250 million and has 40 portfolio companies. It has made 11 exits since June 2005, including the sale of identify Software to BMC Corp. (NYSE:BMC) for $150 million, the sale of Shopping.com to eBay inc. (Nasdaq:EBAY) for $640 million, the sale of Sightline Technologies to Stryker Corporation (NYSE:SYK) for $150 million, and the flotations of Saifun Semiconductors Ltd. (Nasdaq:SFUN) and Maayan Ventures Ltd. (TASE:MAYN).
EMC posted $9.6 billion revenue in 2005.