NEC Signs Contract to Purchase Israeli Co Verisity’s Software

NEC will use the software for functional verification of cellular telephone chips.

NEC has purchased the Specman Elite software of Israeli company Verisity of Rosh Ha’ayin. The company will use the software for functional verification of cellular telephone chips.

Verisity develops and markets software tools that enable engineers who design chips and electronic systems to verify the design of these products, that is track errors at the design stage. Specman Elite enables automated verification of traditionally manual processes. Use of the product shortens the verification process time by up to two thirds, which shortens the entire development process by several months.

Verisity recently raised $13 million in a third private placement. Among the investors were: US company LSI Logic ($2 million), the Sequoia, Gemini and Advent funds, Zohar Zisappel and Stanford University.

At the seed stage and in initial private placements, the following invested in the company: RAD group president Zohar Zisappel, the Eurofund, Gemini, and Advent funds, Gemini fund president Ed Mlavsky, Yossi Sela, Stanford University and others. Among the company’s customers are: Intel, Cisco, 3Com, HP, Hitachi, and Siemens.

Verisity was set up in 1996 by Yoav Hollander and Avishai Silvershatz, and has ninety employees. The company’s R&D center is located in Rosh Ha’ayin, while its marketing and sales headquarters are in Silicon Valley.

According to findings by market surveys and consulting company DataQuest, Verisity is currently the leading company in verification of computer chip development. The DataQuest study shows that, in 1997, the company held an 84% share of the market. Company revenues in 1997 totaled $4 million. There are no figures yet for the 1998 financial year.

Japan-based NEC develops and markets products for the semiconductor, communications and computer industries. The company has 150,000 employees worldwide, and posted revenues of $37 billion in the 1998 financial year.

Published by Israel's Business Arena March 22, 1999