The investment dilutes Formula Vision Technologies' stake in the company.
GigaSpaces Technologies has completed a $3 million financing round from BRM Capital. Following the investment, BRM will own 23% of GigaSpaces. The stake of Formula Vision Technologies (TASE: FVT) will fall from 77% to 59%.
GigaSpaces develops grid server for real-time distributed transaction processing over low-cost open platforms - such blade and Linux servers - for large financial and telecommunications companies.
Under the agreement, Formula Vision has an 18-month option to invest up to $1.3 million more in GigaSpaces, and BRM an additional $400,000. If exercised, the options will increase the financing round to $5 million.
Formula Vision has invested several million dollars in GigaSpaces, since it was founded four years ago. GigaSpaces has 20 employees.
Published by Globes [online], Israel business news - www.globes.co.il - on January 24, 2005