IBM Acquires Israeli Storage Vendor XIVBy Reuters | Posted 2008-01-02 Email Print
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Updated: Big Blue looks to delve further into the storage infrastructure sector after the acquisition for an undisclosed sum.TEL AVIVIBM said on Jan. 2 it had acquired XIV, a privately held storage technology company based in Tel Aviv.
Financial terms were not disclosed.
"This is about IBM further strengthening its infrastructure portfolio," Daniel Powers, vice president of mergers and acquisitions at IBM System Storage, told a news conference.
IBM said the acquisition supports its growth strategy and capital allocation model, as part of its objective for earnings-per-share growth through 2010.
XIV and its 50 employees will become part of IBM's System Storage unit. IBM, which has been operating in Israel since 1949, has between 700 and 800 employees working in research and development in Israel.
XIV Executive Chairman Moshe Yanai said he was the main investor in the company, which did not receive any Israeli government financing. Yanai would not say how much he has invested or what percentage of the company he owns.
Yanai will become an IBM fellow, which is the highest technology position at the company.