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Microsemi Buys PowerDsine


In the largest acquisition of an Israeli company in recent months, Irvine, California-based Microsemi acquired PowerDsine for $245 million. This reflects an 18.5 percent premium over PowerDsine’s close on October 23, the day before the announcement.

Hod Hasharon, Israel-based PowerDsine designs, develops, and supplies processors, modules, and systems for power over Ethernet technology on local area networks. Microsemi manufactures high-performance analog integrated circuits for communications systems.

There have been rumors for months about a potential sale of PowerDsine. Among the names mentioned as possible suitors were Marvell Technology Group, Texas Instruments, Maxim Integrated Products, and Freescale Semiconductor.

“We had a number of offers and picked Microsemi because it’s a mid-sized company, which will enable us to preserve our business and corporate identity,” said PowerDsine CEO Igal Rotem. The Israeli company will become a division within Microsemi.

Q3 Venture Financing Remains Strong Despite War

Venture One’s third-quarter Israeli venture capital survey reported a 15 percent increase in investment. The amount invested in local startups totaled $302 million. However, the number of transactions was unchanged at 41.

Investment in early-stage startups rose to 29 percent of the total, up from 24 percent in the corresponding quarter a year ago.

The figures are good news for the local venture capital industry as there were fears that the war in Lebanon and the rocket attacks on northern Israel during July and August would impact industry financing.

Notable Financing Rounds

Server management company Minicom Advanced Systems has raised an unspecified amount from Intel Capital. Local industry sources put the amount at $7 million to $10 million.

This is the Jerusalem-based company’s first institutional round. Minicom develops and produces keyboard, video, and mouse (KVM) digital and analog systems for server management.

Application-monitoring startup IntellinX has raised $4 million in its first financing round. The investors were the Australian investment firm the Liberman Group and the previous investors in the seed round: Ascend Technology Ventures, Elran Technologies, and SPL Software.

Water purification startup Atlantium has raised $17 million in a third round of financing. The round was led by Israeli investment group Elron Electronic Industries and Aurum Ventures. The investment by Elron is its first in Israel’s fast-growing water technology industry.

Veraz and Allot Filing IPOs

ECI Telecom subsidiary Veraz Networks, a provider of VoIP soft switches, media gateways, and digital compression produces has filed with the U.S. Securities and Exchange Commission for a Nasdaq IPO. The company hopes to raise $100 million at a reported valuation of $400 million to $500 million.

Israeli media reports said that Allot Communications has filed a prospectus with the SEC to raise $70 million at a valuation of $250 million. The Hod Hasharon-based company develops systems for enterprise and IP service providers for improving network performance.

888 Holdings and Magic Software Layoffs

888 Holdings, the world’s largest online casino operator, has laid off 29 workers, or 7 percent of the staff at its Israeli R&D arm, Random Logic. The move follows the parent company’s decision to abandon the U.S. market following a law passed by Congress against online gambling (see Gambling Firms Flee United States).

Magic Software Enterprises is firing 10 percent of its workforce. The Israeli provider of business integration and development technology said that some 55 workers would be let go as part of the company’s restructuring plan. The company reported a $1.16-million loss on $15.7 million in revenue in the second quarter.

Contact the writer:Editorial@RedHerring.com

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