IBM wooed Guardium for almost a year
More details on IBM's $225 million purchase of database security startup Guardium are emerging after TheMarker's exposure of the deal Friday. It turns out IBM has been chasing after Guardium since January, and the price tag is much higher than IBM's original offer.
Guardium's management and owners believed in the company's success and held out for a higher price. The deal is supposed to close tomorrow and only then was to have been announced to the public. The report in TheMarker surprised many involved.
While the deal will not be canceled due to the advance publicity, it is possible there are legal implications for those who revealed the information early.
Guardium's management is refusing to comment or be interviewed until the deal is officially signed and announced.
While Guardium grew out of an Israeli firm - it is a spin-off of Log-On Software - it is officially an American firm. In 2003 the company moved to Boston, including its research and development arm.
It has no Israeli development center, and it is not clear if the Israeli origins of its initial technological development have any tax implications.
The company's management has changed, but it is still run by Israelis. One founder, Lior Tal, left Guardium when they moved to the United States. Tal also founded two other startups: Insightix and SlickAccess.
Guardium has about 60 employees, and all will profit off the sale, said a source close to the company.
As to whether the company is really Israeli, the source said: "The technology is Israeli. The investors are Israeli, the management is partly Israeli and the entrepreneurs are Israeli. True they moved at the beginning to the United States and there are not now 50 to 60 employees in Herzliya Pituah and Ra'anana who will become rich. But that does not change the fact that it is an exit with an Israel component."