Comverse plunges after disappointing results
The middleware company was on the "Globes" list of most promising start-ups in 2007.
Middleware solutions developer GigaSpaces Technologies Ltd. in which Kardan Technologies Ltd. (TASE:KRTC) and Formula Vision Technologies Ltd. (TASE: FVT) jointly own 13%, is apparently up for sale. GigaSpaces was on the "Globes" list of most promising start-ups in 2007.
In its financial report for 2010, Kardan Technologies says, "In the last quarter, Software AG and Nokia approached GigaSpaces." Kardan Technologies believes that cloud computing could bring higher potential for acquisition by companies seeking to provide a similar service, but which lack the technology.
GigaSpaces CTO Nati Shalom and Yossi Gal-On founded the company in 2000. The company develops middleware for grid computing environments to achieve high-speed connectivity between resources (processing and/or memory) of different computers. According to the Israel Venture Capital Association, the company has raised $21 million from BRM Capital, Intel Capital, Formula Vision, and Plenus Venture Lending Fund.
GigaSpaces' numbers do not promise an especially big exit. Although the company achieved $10-15 million in sales in 2006-07, and held a financing round at a company value of $52 million in late 2007, the next two years were less successful. The company posted $7 million in sales in 2008, and reportedly had similar turnover in 2009. The company also made cutbacks in 2009 to bring it closer to the operating breakeven point.
Kardan Technologies says that sales at GigaSpaces rose 50% in 2010, thanks to the booming cloud computing market. If the company maintains this growth rate in 2010, an exit in the near future could be made at a company value of $50-100 million, on the basis of the high multiples currently enjoyed by cloud computing companies.
Published by Globes [online], Israel business news - www.globes-online.com - on March 28, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011
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