TEL AVIV, Israel, March 25, 2010 /PRNewswire-FirstCall/ -- Ness
Technologies, Inc. (NASDAQ: NSTC and TASE: NSTC), a global provider
of IT services and solutions, today announced that it has signed a
definitive agreement to acquire Gilon Business Insight Ltd., a
leading provider of business intelligence (BI) consulting and
implementation solutions and services. The acquisition further
positions Ness Technologies as a leading provider of enterprise
solutions, with a proven blend of ERP, BI and CRM capabilities.
Ness will utilize Gilon's capabilities to help fulfill the growing
demand for business intelligence applications, solutions and
services around the world.
The purchase price in the all cash transaction is 65 million New
Israeli Shekels (NIS), or approximately $17.5 million. In addition, should Gilon achieve
certain performance goals, Ness will pay an additional amount of up
to NIS 9 million, or approximately
$2.4 million. In fiscal year 2009,
Gilon generated revenues of about $22
million and was profitable. The acquisition is expected to
be accretive for 2010, on a non-GAAP basis. As of the end of
December 2009, Gilon had
approximately 230 employees and it currently has 280 employees,
mainly in Israel. The acquisition
is expected to close during Q2.
"The acquisition of Gilon is an important step enhancing our
global business intelligence offerings," said Larry Scott, President of Ness Global
Industries. "Gilon complements our strong presence in the North
American business intelligence marketplace, enabling us to deliver
state-of-the-art business intelligence solutions and systems using
a multi-shore delivery model. Business intelligence solutions are
one of our most important global capabilities, as enterprises
around the world struggle to turn massive amounts of data into
meaningful, actionable business knowledge."
"Business intelligence is one of our value added solutions for
enterprise customers, and especially for their strategic decision
makers," said Effi Kotek, President
of Ness Israel. "In Israel, this
acquisition strengthens our position as a leading provider of
enterprise solutions in general, and business intelligence in
particular. We look forward to having Gilon's employees and
management join the Ness team to cement and grow our market leading
position for BI solutions and services."
"We are very excited to become part of Ness Technologies and we
look forward to contributing to the company's service offerings and
success around the globe," said Guy
Greenberg, Gilon's CEO. "Our integration with Ness is a
natural step for us. We bring to Ness a highly experienced team in
consulting, implementation, training and management of large scale
BI projects."
"We were fortunate to join forces with Gilon's founders and
management to turn Gilon into the leading BI provider in
Israel," said Avi Zeevi, Active Chairman of Gilon, who led the
investment in Gilon on behalf of DPartners and Viola Group. "The
acquisition by Ness will enable Gilon to accelerate its growth as a
true global player."
About Ness Technologies
Ness Technologies (NASDAQ: NSTC and TASE: NSTC) is a global
provider of IT and business services and solutions with specialized
expertise in software product engineering; system integration,
application development and consulting; and software distribution.
Ness delivers its portfolio of solutions and services using a
global delivery model combining offshore, near-shore and local
teams. With about 7,800 employees, Ness maintains operations in 18
countries, and partners with numerous software and hardware vendors
worldwide. For more information about Ness Technologies, visit
http://www.ness.com.
About Gilon Business Insight
Gilon Business Insight is a business intelligence consulting
group offering a wide array of BI solutions and services, including
high-level strategic consulting, enterprise analytical services,
industry-specific out-of-the-box solutions, strong on-time delivery
and proven implementation capabilities. Gilon's client portfolio
comprises large and medium size organizations with main focus and
expertise in financial services, telecommunications companies, and
large enterprises. Gilon is headquartered in Israel and also has operations in Turkey. For more information about Gilon
Business Insight, visit http://www.gilon.com.
About D Partners
D Partners, an affiliate of the Viola Group, is an innovative
private equity investment fund focused primarily on growth
opportunities in Israel. The D
Partners funds have approximately $300
million under management. These funds are uniquely
structured to offer private investors investment opportunities that
normally are only available to institutional investors. D Partners
applies a diversified approach, and benefits from unique access to
investing in the Viola Group funds in a special economic efficient
structure, and in a complementary portfolio of Israeli and
Israeli-related companies. For more information visit:
http://www.vpartnersfund.com
Forward Looking Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements often are preceded by words such
as "believes," "expects," "may," "anticipates," "plans," "intends,"
"assumes," "will" or similar expressions. Forward-looking
statements reflect management's current expectations, as of the
date of this press release, and involve certain risks and
uncertainties. Ness' actual results could differ materially from
those anticipated in these forward looking statements as a result
of various factors. Some of the factors that could cause future
results to materially differ from the recent results or those
projected in forward-looking statements include the "Risk Factors"
described in Ness' Annual Report of Form 10-K filed with the
Securities and Exchange Commission on March
15, 2010. Ness is under no obligation, and expressly
disclaims any obligation, to update or alter its forward-looking
statements, whether as a result of such changes, new information,
subsequent events or otherwise.
Media Contact:
Maya Lustig
Intl: +972-54-677-8100
Email: maya.lustig@ness.com
Investor Relations Contact:
Drew Wright
USA: +1-201-488-3262
Email: investor@ness.com
SOURCE Ness Technologies Inc