Giant Intel buys tiny Neocleus's assets

The company's 15-20 employees will join Intel Israel's R&D center.

Intel Corporation (Nasdaq: INTC) has acquired the assets of Israeli PC virtualization start-up Neocleus Inc. for a few hundred thousand dollars. The company's 15-20 employees will join Intel Israel's R&D center.

Neocleus CEO Ariel Gorfung and CTO Etay Bogner found the company in 2006. The sale of the company will presumably bring little cheer to its founders or investors, given that it raised $22 million. Most of the investment was by Battery Ventures and Gemini Israel Funds. It is doubtful if the current transaction will yield any funds for the investors.

Neocleus was unavailable for comment.

This is not a usual acquisition by Intel, but neither is it surprising. The processor giant was never a partner of Neocleus, but the start-up uses its processors for virtualization.

Published by Globes [online], Israel business news - www.globes-online.com - on September 5, 2010

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

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