Amazon buying Israeli startup CloudEndure for $200 million – Business

Amazon buying Israeli startup CloudEndure for $200 million - Business

The e-commerce giant Amazon is buying the Israeli startup CloudEndure, which provides business continuity software solutions for disaster recovery, for $200 million. The deal has been finalized and is expected to be announced in the next several days.

Based in Ramat Gan, CloudEndure was formed in 2012 Ofer Gadish, Ofir Ehrlich, Gil Shai and Leonid Feinberg, and has raised $20 million since from the investment arms of Dell and InfoSys, Magma Venture Partners and investor Zohar Gilon.

A month ago Infosys, a giant Indian company that provide information technology services, announced it had inked an agreement to divest its shares CloudEndure for around $ 15.3 million.

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Together with reports that Korea’s Samsung is in talks to buy Israel’s Corephotonics for $150 million, the sale would mark a strong start for exits in 2019 after a tepid 2018. The value of high-tech exits plunged by a third last year from 2017 to just $4.9 billion, according to the PwC Israel 2018 Exits Report.

CloudEndure’s software is used to transfer enterprise data to cloud servers, creates a copy and ensures rapid recovery in the event of a system crash. In the process it places lots of data on cloud providers, including Amazon, which is a major player in the sector in addition to its better-known e-commerce business.

The acquisition won’t be the first or the biggest for Amazon in Israel. In 2015, it acquired Annapurna Labs for $360 million, which became the center for developing chips used by Amazon Web Services, its cloud-computing unit.

Amazon also has a smaller research and development unit in Israel working on Amazon Go, its cashier-less supermarkets as well as another group called Lab126 working on computer vision for smart speakers, like Echo Show.

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