Is Cisco Systems Inc. (NASDAQ:CSCO) Looking For Israeli Flavour?
Technology companies, including many of Fortune 500 companies like Cisco Systems, Inc. (NASDAQ:CSCO), Intel Corporation (NASDAQ:INTC) and International Business Machines Corp. (NYSE:IBM) among others have been found involved in high-tech acquisitions of Israel-based start-ups, reports Alanna Petroff, London based business reporter of CNNMoney.
Cisco in particular has traded 11 acquisitions and invested in 22 start-ups in Israel since 1998. Tal Slobodkin, Senior Manager, Corporate Development at Cisco, Israel mentioned that the companies being founded in Israel are very relevant in terms of data centers, security and networking; in line with what the companies like Cisco Systems, Inc. (NASDAQ:CSCO) are looking for.
The Israel Factor
Dealogic data suggests about $4 billion worth acquisitions, since 2012, of registered Israeli tech firms. However this figure excludes most deals that were kept private. Israel based Microsoft Corporation (NASDAQ:MSFT) executive estimates about $13 billion worth acquisitions of Israel based tech firms since 2012.
Moreover the Israeli government also continues to support new tech firms and research and development activities through tax breaks; loans and grants as well as helping local entrepreneurs develop contacts in the U.S.
Cisco’s Latest Investment
Earlier this week there were reports of Cisco Systems, Inc. (NASDAQ:CSCO) joining a group of investors that funded $42 million in Israel based startup Compass-EOS, that focuses on SDN architectures and masters in next generation high-speed routers. Following this round of funding, the total funding extends beyond $160 million.
Compass-EOS focuses on specific geographies and market segments for its product development initiatives and largely competes with Juniper Networks, Inc. (NYSE:JNPR) and Alcatel Lucent SA (ADR) (NYSE:ALU) and others besides one of its investor, Cisco.
Israeli Ministry of Defense Tender
Cisco Systems, Inc. (NASDAQ:CSCO), earlier this month, also won a large-scale tender and now will be supplying communication equipment such as centers, routers, phones over the next five years to Israeli security forces.