Israeli cloud software start-up Revello Systems has been purchased by the US technology giant Oracle in a transaction estimated at up to $500 million.
Oracle announced the purchase on its website Monday evening. The details of the transaction were not released but several US business news sites have reported the deal as well exceeding the previously rumored price of $430 million.
Ravello Systems has made its mark in recent years as a top-tier developer of cloud technology known as “visualization,” which allows applications work with multiple cloud providers or platforms. The company last year developed a new software enabling the transfer of data between different cloud platforms and servers.
Founded in 2011 by Israeli entrepreneurs Rami Tamir and Benny Schnaider, Ravello currently employs 70 people at its Ra’anana offices north of Tel Aviv.
In its short statement Oracle added that “all Ravello employees will be joining Oracle as part of Oracle Public Cloud.”
The deal is the newest in a series of high-dollar Israeli exits that have painted the country’s high-tech sector as a fertile breeding ground for major Silicon Valley investment in recent years. In 2015, 70 Israeli high tech companies were bought out by larger firms for a total of $10.6 billion, second only to 2014’s $14.8 billion in deals, according to a PriceWaterhouseCooper report.
Oracle is the world’s second-largest software developer behind Microsoft and specializes in developing and marketing database technology, cloud engineered systems and enterprise software products.
Ravello Systems is the latest in a long list of acquisitions Oracle has made in the past two years in a effort to develop its Oracle Public Cloud and compete with the likes of Amazon Web Services and Microsoft Azure.
Writing on the Ravello website, Tamir said the deal will help the company provide better services to its customers.
“We believe this agreement will accelerate our ability to reach more customers, deliver more value, and enhance our technology at an accelerated pace in order to better serve you,” he wrote.
Tamir stressed that current users would not experience any disruption as the company changes hands, saying that the service would continue “as is.”
“I want to emphasize that our top priority is ensuring an uninterrupted service and seamless experience for you and all of our customers and partners,” he added.
— ravello (@ravellosystems) February 22, 2016
Oracle founder and executive chairman Larry Ellison has ranked top among Jewish individuals appearing on the Forbes magazine’s annual list of world billionaires since 2011, with an estimated worth of $36 billion in 2015.