IBM Buys Diligent for Estimated $200M

A Globes article published today reported that IBM has bought Israeli storage solutions developer Diligent Technologies Corporation for an estimated $200 million.  The acquisition comes just one week after the computing giant bought FilesX for $70-90 million (see post). 

IBM is snatching up Israeli startups left and right–  It recently acquired XIV, partnered with Siverge and is keeping its eye on the mysterious Ctrue.  From Globes:

“Diligent Technologies is closely linked with XIV executive chairman Moshe Yanai, who is now responsible for storage development at IBM. Yanai and Diligent chairman and CEO Doron Kempel co-founded the company as a spin-off of EMC Israel in 2002. EMC Corp. (NYSE: EMC) still owns 20% of Diligent, which develops solutions for one of the hottest fields in data storage – the prevention of duplicating files when they are backed up (de-duplication). The company’s solutions enables data storage facilities to back up only changes made in files, rather than duplicate the entire file, thereby eliminating redundancies to save space and memory mechanisms.

According to IVC Online, Diligent Technologies has raise $50 million. Its shareholders, in addition to EMC, include Accel Partners, Gemini Israel Funds, Eastward Capital Partners, and Matrix Partners.”


IBM and Siemens Vying for CTrue

ctrue_logo12.jpgIBM recently bought Israeli storage start-up XIV for $350 million, but according to Haaretz it’s now looking to buy another Israeli start-up, CTrue Ltd. Apparently IBM is not alone in tempting the secretive firm into its giant nest – Siemens also wants a piece of the pie.

But Rehovot-based CTrue, which specializes in three-dimensional imagery and biometric identification based on physiological data, isn’t interested …just yet.

According to CTrue’s business development manager, Shai Yaakobi, the start-up has met separately with both companies and has received initial offers in the $80 million range. But CTrue, which was founded just two years ago, may bet that it can make double or triple that or even more if it plays its cards right.

Check out the Haaretz piece here.