GE Buys Israeli-Japanese 'Internet of Things' Startup for $40 Million

Firm develops tools for developing apps without writing any computer code: Customers include Toyota, Motorola and Fujitsu

General Electric's Global Operations Center in Mexico.
General Electric's Global Operations Center in Mexico. Daniel Becerril/REUTERS

American industrial giant General Electric is buying the Israeli-Japanese startup IQP Corporation for an estimated $30 million to $40 million, though the parties have not released the amounts involved.

IQP makes a development environment for apps for the “Internet of Things” that does not require writing computer code.

IQP was founded by Guy Kaplinsky and his wife Maki Kaplinsky in Japan in 2011, but it has its research and development center in Herzliya in Israel.  IQP moved its headquarters from Japan to Silicon Valley in 2016 to better enable the company to expand. So far, about $10 million has been invested in the firm, $6 million from Fujitsu and $4 million from Kaplinsky, who owns 80% of the shares of the company’s shares.

The company employs 15 people, who are expected to be integrated into GE’s Predix software project, as part of GE Digital’s development center in Herzliya. Ge and IQP have cooperated in the past as part of GE Digital’s startup accelerator in Herzliya

Kaplinsky told Thmarker that h is pleased with the acquisition for a numberof reasons: His “baby” is progressing and the concept they developed may still be young, but it now has been validated by a leading corporation.  IQP had a number of offers but decided to go with GE. “We knew and worked with the company over the last year and I know that the product will grow there and the probability the product will become the word standard is high, Kaplinsky told TheMarker.

Among IQP’s customers are Toyota, Fujitsu and Motorola. The apps are simple to build, similar to using Wix for building websites.

William Ruh, the CEO of GE Digital, said the acquisition of IQP will make its Predix system more accessible and allow their partners to build applications in logical manner for their businesses.