Maayan Ventures sells DroidSecurity to AVG for $4.1m

Antivirus developer AVG Technologies is making its first acquisition in Israel.

Maayan Ventures Ltd. (TASE:MAYN) has sold portfolio company DroidSecurity Ltd., a pioneer of mobile security solutions, for $4.1 million. DroidSecurity's founders are eligible for an additional payment of $5.3 million, subject to milestones.

Maayan did not disclose the name of buyer, except to say that it is a foreign company, but it is reportedly AVG Technologies Inc., a developer of antivirus solutions, which is making its first acquisition in Israel.

DroidSecurity's solutions protect data on mobile telephones against identity theft, invasion of privacy, and other threats. DroidSecurity CEO Eran Pfeffer, CTO Dror Shalev, and VP marketing Omri Sigelman founded the company two years ago. It has five employees.

Maayan Ventures owns 39% of DroidSecurity. A group of private investors, led by Quantumwave Capital partner Shachar Efal (formerly president of Ness Technologies Israel Ltd.), owns 20%. DroidSecurity's managers and employees own the rest.

Maayan is making a handsome return on its investment: $2.2 million, on an investment of $100,000, plus a $500,000 grant from the Office of the Chief Scientist's Incubator Program. Maayan said that it will have to repay the Chief Scientist $800,000.

Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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