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Ness Technologies Acquires Gilon Business Insight
Ness Strengthens Position as Leading Provider of Enterprise Solutions
TEL AVIV, Israel, March 25, 2010-- 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
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
Ness Technologies Acquires Gilon Business Insight
Ness Strengthens Position as Leading Provider of Enterprise Solutions
TEL AVIV, Israel, March 25, 2010-- 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
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