U.S. business software giant Oracle has acquired Israeli-founded cloud computing firm Ravello Systems at an estimated price of $400 million to $500 million.
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Ravello is based in Palo Alto, California, and has a development center in Ra’anana. After the acquisition, which was announced late Monday, Oracle is expected to establish its own cloud technology research and development center in Israel.
Ravello, which was founded by CEO Rami Tamir and Benny Schnaider in 2011, develops means to operate applications in the cloud, where users store data online beyond their own computer systems. About 40 of its 60 employees are located in Israel.
Ravello’s system enables the transfer of applications from a business to the public cloud and back with the press of a button and without the need for adaptation or rewriting, reducing development costs.
Otherwise organizations seeking to transfer applications to the public cloud must adapt them to the cloud’s technology platforms. For example, Amazon would adapt its application to the Linux operating system.
In addition to the founders, U.S. firm Bessemer Venture Partners and Israel’s Vintage Investment Partners entered later as investors.
Before the acquisition, Ravello had attracted $54 million in investment. The company’s initial investors included Sequoia Capital, for which the sale to Oracle is the venture capital fund’s third exit with Tamir and Schnaider, and Norwest Venture Partners.
Ravello completed its most recent funding round a year ago, raising $28 million from investors led by Qualcomm Ventures and SanDisk Ventures, joined by Sequoia, Bessemer, Norwest and Vintage.
Tamir and Schnaider are serial entrepreneurs. In 2008 they sold Qumranet to Red Hat for $115 million in the first acquisition for the open code company in Israel. The pair were also among the founders of Pentacom, which Cisco Systems bought for $118 million in 2000, and of P-Cube, which Cisco bought for $200 million in 2004.