Software giant Microsoft (Nasdaq: MSFT) today announced the purchase of Israeli start-up Gteko Technologies Ltd. for some $120 million. The precise value of the deal is unknown at this time. So far, $13 million has been invested in Gteko.
Gteko was founded in 1992 and until 2004 had not raised money from venture capital funds. Two years ago, it raised funds from Pitango Venture Capital, Intel Digital Home, NEC Europe and private investors such as Dr. Yossi Vardi, Dov Freund and Gteko CEO Joshua Glazer. America-Online, one of the company's customers, had an option to purchase 5% of the company, but declined to exercise the option.
Gteko develops products in the field of user experience and automated technical support for home networks and smart homes. The company's products enable automatic technical support, including user initiated troubleshooting and a sophisticated technical support tool.
Gteko achieved profitability in 2004, which is the reason for speculations in Israel's high-tech and venture capital sectors, about the relatively small deal.
In May, Gteko was picked as one of the hundred most promising technology companies in Europe, by technology magazine "Red Herring."
Published by Globes [online], Israel business news - www.globes.co.il - on September 26, 2006
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