Globes, Israel business news - www.globes-online.com 8 February 2010
The acquisition of Exanet will give Dell its first R&D center in Israel
Dell Inc. is acquiring the business of bankrupt Israeli start-up Exanet Ltd. for $12 million, a month after the company went into receivership. "Globes" revealed last month that Dell was likely to buy the data storage systems developer.
The acquisition of Exanet will give Dell its first R&D center in Israel. Dell, founded by chairman and CEO Michael Dell, lacks Exanet's clustered storage solution, in contrast to its competitors.
In early December, Exanet informed its employees that it was going out of business because it could not repay the principle on the $10 million loan it had taken from Kreos Capital.
In January, "Globes" reported that Dell representatives were in Israel to close a deal. The sale is a fairly good deal for Exanet's shareholders, Eitan Wertheimer (40%), Evergreen Venture Partners (25%), and Giora Yaron (13%), who had come to terms with the business being closed, the company having run out of cash.