VMware Buys Wanova for $100m

The acquisition of Wanova, which was formed in 2007 by Issy Ben-Shaul and Ilan Kessler, is the U.S. company’s third Israeli acquisition in four years.

VMware, the U.S. maker of computer-virtualization and cloud technology, agreed on Tuesday to acquire Israeli start-up Wanova for an estimated $100 million.

The acquisition of Wanova, which was formed in 2007 by Issy Ben-Shaul and Ilan Kessler, is the U.S. company’s third Israeli acquisition in four years. In 2008 it bought B-Hive for $67 million, and last year it acquired Digital Fuel for $120 million.

VMware is a unit of EMC, which less than two weeks ago bought Israeli start-up XtremIO for $450 million, its seventh Israeli start-up acquisition.

Both VMware and Wanova are in the field of virtualization, a technology that enables a computer to run several operating systems on a single central processing unit, thereby saving businesses considerable costs. Wanova’s Mirage technology is aimed at the desktop segment, employing cloud computing that enables personal computers to be operated from a server.

Wanova’s backers Israeli venture capital fund Carmel Ventures and Greylock Partners and Opus Capital, both of the U.S. had put $23 million into the company since it was founded, in two rounds of financing.

VMware is headquartered in Campbell, California, with a research and development center in Netanya. Jeff Jennings, vice president for enterprise desktop at VMware, said Wanova’s 40 employees will be offered jobs at the Netanya center, which employs about 120 people.

“We have been looking at Wanova for two years,” Jennings said. “The company has a mature technology, but that wasn’t the only asset were looking at. One of the most important things is the company team. We see it as an excellent group that will fit in well with VMware’s operations.”