Israeli start-up Dynasec Ltd. has raised $1 million in a financing round at a company value of $6.7 million. Investors included Deutsche Bank AG (NYSE:DB; LSE; XETRA: DBK), Merrill Lynch & Co. (NYSE:MER), Credit Suisse Group (NYSE: CSR; SWX: CSGN; XETRA: CSGZ), a Greek and Polish banks. The investors received 15% of the company and have an option to invest an additional $500,000 at the same terms.
Dynasec is a subsidiary of TACT Computers Ltd. The company develops risk management and enterprise procedures to enable financial institutions to comply with banking regulations. Dynasec chairman and CEO Mati Ram founded the Yokne’am-based company in 2002.
Dynasec has sold its solution to most of Israel’s banks: Bank Hapoalim (LSE: BKHD; TASE: POLI), Bank Leumi (TASE: LUMI), Mizrahi Tefahot Bank (TASE:MZTF), First International Bank of Israel (TASE: FTIN1;FTIN5) Bank of Jerusalem (TASE: JBNK), and Bank Yahav for Government Employees Ltd., and is due to announce a contract shortly with Israel Discount Bank (TASE: DSCT).
The company has also sold its solutions to major companies, including Israel Aerospace Industries Ltd. (IAI), Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), Israel Electric Corporation (IEC), Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT), Ormat Industries Ltd. (TASE: ORMT), Clalit Health Services, and Zim Integrated Shipping Services Ltd. The company has cooperation agreements with leading international accounting firms, including BDO.
“Globes”: How does a small Yokne’am company attract such top-tier investors?
TACT Computers general manager Rafi Amit: “Eli Elroyi from Kardan subsidiary GTC organized the group of investors from the Greek and Polish banks.”
Published by Globes [online], Israel business news - www.globes.co.il - on October 2, 2007
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