Google to Pay Over $100m for Israeli-American Startup Firm Elastifile

Storage technology startup has developed solutions for use with Google Cloud, Amazon Web Services and Azure, aimed at large corporations

A Google Cloud logo outside of the Google Cloud computing unit's headquarters at the Moffett Place office complex in Sunnyvale, California, U.S., June 19, 2019.
\ REUTERS PHOTOGRAPHER/ REUTERS

Elastifile, an Israeli-American storage technology startup, is being acquired by Google for a price estimated at more than $100 million, the two companies said on Tuesday.

The two companies did not reveal the price Google will be paying, but they said they expected the acquisition to be completed by the end of the year after regulatory approvals. It will then become part of the cloud-computing unit of the U.S. technology giant best known for its search engine.

Elastifile has developed file storage solutions for use with Google Cloud, Amazon Web Services and Azure and aimed at large corporations. Its services are used in industries such as media and entertainment, where artists require shared file storage for image rendering, and in the life sciences field, assisting in genomics processing.

“File storage is fundamental to enterprise infrastructure and a priority for customers looking to accelerate their digital transformation,” said Thomas Kurian, CEO of Google Cloud.

The two companies had already been working together. Elastifile File Service was integrated with the Google Cloud Platform earlier this year. After the acquisition, Elastifle will be integrated with Google Cloud Filestore in the coming months.

Founded in 2013 by Israelis Amir Aharoni, Roni Luxenburg, Shahar Frank, the company has sales and marketing offices in San Jose, California, and an Israeli research and development center in Herzliya Pituach. Since last year, its CEO has been Erwan Menard, a French national.

Elastifile has raised $74 million from corporate investors such as the data-storage company EMC and venture capital funds Battery Ventures and Lightspeed.

In other high-tech news, Israel’s Maniv Mobility said on Tuesday that it closed its second venture fund with $100 million that includes commitments from 12 companies in the automotive and transportation sectors.

Among the investors in Maniv’s newest fund are Alliance Ventures, the strategic venture capital arm of Renault-Nissan-Mitsubishi, Aptiv, BMW i Ventures, Hyundai Motor Group, Lear Corp., LG Electronics, Shell Ventures and Valeo.

Other investors include Deutsche Bahn Digital Ventures, the venture arm of the German rail and logistics operator Deutsche Bahn, as well as Israeli car importer Carasso Motors.

Maniv said it would continue to invest in startups that focus on data and connectivity, digital and electric mobility platforms, autonomous and autonomous-enabling technologies as well as novel business models that change how people and goods move.

Maniv has invested in 27 companies, including Arbe Robotics, Bipi, Cognata, Hailo Technologies, Intuition Robotics, Nauto, Oryx Vision, Otonomo, Phantom Auto, Revel Transit and Upstream Security.