EMC plans more Israeli investments

EMC spent $7b. to acquire 11 companies in 2006 in an effort to grow its software and services businesses and fill missing areas in its technology portfolio.

December 6, 2006 08:12
2 minute read.
tom heiser 88 298

tom heiser 88 298. (photo credit: Courtesy)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


In the wake of three local purchases this year, information management company EMC Corp. has embarked on a strategy to make Israel an integral part of its acquisition activities and further invest in its operations here. "We did not have a strategy to buy in Israel but were looking at areas where we needed technologies and they happened to be here," Tom Heiser, EMC's senior vice president corporate development and new ventures told the press at the EMC annual technology event in Tel Aviv on Tuesday. "We woke up when we made the acquisitions because we realized these are the best companies in each of their fields. Now, we want to be more proactive in Israel." Massachusetts-based EMC spent over $300 million in Israel-related deals this year, acquiring Ramat Gan-based Kashya for $153m. in May and following that up with the purchase of process management provider ProActivity and application discovery company nLayers for undisclosed amounts a month later. Its $2.1 billion acquisition of information security provider RSA in September included RSA's Herzliya-based subsidiary Cayota, bringing EMC's total Israel work force to 350 employees. In total, EMC spent $7b. to acquire 11 companies in 2006 in an effort to grow its software and services businesses and fill missing areas in its technology portfolio. It is looking to strengthen its position in all areas including the storage, virtualization, content management, security and resource management market segments. According to the company, these areas have a combined revenue opportunity of $60b. and will be the focus of its acquisition and research and development activities. In addition to looking for further acquisitions, Heiser said EMC this week committed to work closely with the Israeli venture capital industry as part of its investment strategy. In the past, EMC has had a similar strategy with the VC community in the San Francisco and Boston areas to make investments in start-up companies with the VC industry leading the funding. Adding Israel to the list covers the three regions "with the most mature VC markets we've seen for our industry," Heiser said. Meanwhile, the company invested $1.2b. in R&D this year and $3b. over the last three years and Heiser stressed the investment would continue unaffected by the company's restructuring. EMC said in October it would cut 1,250 jobs after reporting lower-than-expected third quarter profits due to expenses incurred by its stock buybacks through the year. The restructuring was not expected to affect EMC's R&D or Israel activities. "As long as Israel continues to generate investment and innovation that is relevant to EMC we are going to continue to grow," Heiser said. "We will grow [in Israel] by expanding our four businesses here through investing and hiring people in those units and through the potential to acquire new companies assuming they are relevant to our strategy."

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection