GlassHouse Technologies announced Wednesday that it acquired Ra'anana-based IT consulting firm MBI Group and will now be the largest company in Israel to offer IT infrastructure consulting services.
This is the first time an American company has purchased an Israeli service company, rather than a product company, according to Doron Rosenblum, CEO of GlassHouse Israel, the company formed through the merger of MBI's two Israeli subsidiaries, MBI and Integrity Systems.
The merger was expected to result in a substantial increase in the work force of the combined business, which currently employs around 200 workers.
"We plan to increase the number of employees," Rosenblum said, "and to expand our offerings of services to our customers in the field of IT infrastructure."
The acquisition was made to increase GlassHouse Technologies' reach in European and Middle Eastern markets, said Framingham, Mass.-based GlassHouse's CEO Mark Shirman.
"GlassHouse's strategy is to become a global company, and this was the next logical step after establishing our brand in the UK," Shirman said.
MBI, founded in Israel 22 years ago by Michael Burstein, has expertise in storage, backup and data protection.
Integrity Systems, founded in 1995, specializes in complex infrastructure solutions for hi-tech, communications and financial companies.
GlassHouse Technologies' main methodology, Transom, is used to streamline IT infrastructure for companies, which have included Exxon Mobil, Bloomberg and Morgan Stanley.