ServiceNow agrees to buy Israel’s Neebula for $100 million
Sale will generate huge return to venture capital backers who had invested just $5 million in the startup
ServiceNow, a California-based maker of information technology management software used by businesses, said on Wednesday it had reached terms to acquire Israel’s Neebula Systems for $100 million in cash.
ServiceNow said that after the acquisition is completed later this month it would make Neebula’s flagship product, ServiceWatch, an “integral part” of its IT Operations Management portfolio. ServiceWatch automates the discovery, mapping, and monitoring of IT-enabled enterprise services.
“ServiceWatch will become a centerpiece of our IT Operations Management strategy,” said Frank Slootman, ServiceNow’s CEO. The addition of ServiceWatch will augment the capabilities of other ServiceNow IT Operations Management products such as Event Management, Orchestration and Discovery.
With about $125 million in sales last year and losses of about $3 million, Santa Clara, California-based ServiceNow has an $8 billion market capitalization on the New York Stock Exchange.
Neebula, which was formed in 2009 by CEO Yuval Cohen and Chief Technology Officer Ariel Gordon, was backed by just $5 million in venture capital from Genesis Partners and Pitango Venture Capital, which will enjoy an unusually big return on their investment. Genesis owns about 30% of the startup and Pitango 40%.
Neebula’s 35 employees, based in Hod Hasharon, will now become employees of ServiceNow, which will open a research and development office in Israel.
Neebula develops software that enables large organizations management of all their IT software in an integrated package. Five years ago it signed a coloration agreement with VMware, a U.S. company that provides cloud and virtualization software.
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