Hewlett Packard Co. (NYSE:HPQ) today announced the establishment of an International Technology District (ITD), through which the company will support high-tech Israeli companies with potential in fields where HP has relevant technology infrastructures. The ITD will be managed from Israel and the company predicts that it will handle 300 Israeli companies within two years.
HP has been one of the most active international high-tech companies in Israel in recent years. Its biggest acquisition was HP-Mercury Interactive 18 months ago for $4.5 billion, and it has acquired three Israeli printer manufacturers: Scitex Digital Printing Ltd., Indigo, and Nur Macroprinters Ltd. (Pink Sheets:NURMF.PK). HP says that the acquisitions have been great successes, and they have whetted its appetite for more big takeovers, especially in Israel.
HP said, "Through ITD, HP will locate and develop significant strategic relations with new and promising companies even before they turn into another Mercury."
Former HP Israel telecom and financial manager Harel Ifhar will manage the ITD, which will have 20 employees who will map and characterize the Israeli companies on the basis of innovation, breakthrough potential, business model,, growth potential, technological vision, and market trends. The unit will answer to HP SVP and general manager, Technology Solutions Group, Europe, Middle East and Africa Francesco Serafini.
Serafini said, "Our recent acquisitions and investments in Israel, with an emphasis on the successful takeover of Mercury have only increased our sense that our relations with Israel's brilliant technological minds needs to be institutionalized and begin at an earlier stage. That is the only way that both parties will achieve the maximum benefit."
Israel is not the first country where HP has set up an ITD.
Ifhar said, "This will be a major investment and we invite Israeli high-tech companies to sail the oceans on the aircraft carrier that is HP."
"Globes": What kind of companies are you targeting? Software? Communications?
Ifhar: "We've done our market research, identifying companies and what they produce. We'll focus on software companies, but not just on them. We'll also look at solutions for information systems, telecommunications, and the public sector. Most companies in the Israeli market touch on these sectors and develop software and solutions, while we can supply HP's capabilities of technology, services, and collaboration."
What's your mandate? Can you recommend acquisitions or strategic investments?
"There are a lot of resources within HP that will use for the companies participating in the IDT, including at the advisory, marketing, technology, and integration levels. Part of our mandate includes watching companies suitable for acquisition and to recommend them to management."
Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2008
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