Hilan Tech Ltd. (TASE: HLTC) is expanding its presence in the local IT market, with the acquisition of consulting firm WE! Ltd. for NIS 26 million, at a company value of NIS 32 million. WE's five co-founders and managers will continue to manage it in the coming years.
Hilan Tech, which is controlled by CEO Avi Baum, and chairman Ofer Hirchson, develops and provides payroll and workforce management software solutions. The company functions both as an applications service provider, and a supplier of software to the business sector. The WE acquisition will give Hilan Tech a foothold in a field it has not engaged in so far - IT enterprise infrastructure consulting and integration, primarily in Microsoft environments.
This is Hilan Tech's third strategic move so far this year. In early 2007, it acquired the kibbutz income and expenditure management business of Da'at Plus Computerized Applications Ltd. for NIS 500,000. Two months ago, it announced plans to invest NIS 10 million in the development of a SAP-based payroll management system.
Hilan Tech raised NIS 100 million in a debt issue in May, an offering which increased its total cash on hand to NIS 125 million. The latest acquisition is therefore the first investment made from these proceeds.
Published by Globes [online], Israel business news - www.globes.co.il - on December 3, 2007
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