NEW YORK, June 1 /PRNewswire/ -- JVP, one of Israel's leading early stage
venture capital firms, announced today the sale of its portfolio company,
MagniFire Websystems Inc., to F5 Networks, Inc., (Nasdaq: FFIV) for
$29 million in cash. F5, the leading provider of Application Traffic
Management products, will incorporate MagniFire's signature Web security
gateway, TrafficShield, into its product offerings to help corporations
address the critical problem of application layer security.
In 2002, JVP and Lucent Venture Partners transformed MagniFire's content
networking intellectual property into the leading Web application firewall
provider. JVP and Lucent Venture Partners continued to support the company
with additional funding, identified the financial services market, and
recruited top executive talent to MagniFire's offices in New York and Israel.
The acquisition will incorporate MagniFire's solution in F5's extensive
sales, marketing and distribution channels and further F5's reach in the
enterprise application security market. MagniFire's proprietary technology
and developed products are expected to enhance F5's role as the leading IT
provider of availability, scalability, performance, and security to over 6000
F5 intends to retain MagniFire's entire staff based in New York and
Israel. In doing so, F5 gains a competitive entree into the growing and well
renowned Israeli security industry, the birthplace of the network firewall.
"JVP and Lucent Venture Partners have been outstanding partners in
building our company, and helping to take MagniFire to a new level of
success," said MagniFire CEO Eitan Bauch. "As part of F5, we intend to
dramatically impact the application security market by offering the most
secure application traffic management solution in the industry."
According to the FBI / Computer Security Institute, 75 percent of US
businesses experienced financial losses due to Web-based attacks last year
"Application security is a gaping hole for financial institutions," said
Allon Bloch, principal at JVP. "Combined, MagniFire and F5 have the
opportunity to solve this security breach." Bloch continued, "We are also
happy to help establish an Israeli R&D center for a fast growing networking
company like F5."
By acting as a conduit, JVP incubates first-rate Israeli technology
companies, and then connects them with customers and financial markets in New
York City and beyond. MagniFire represents a model that other startup
companies can emulate.
"With our focus on both enterprise software and security applications, we
have been seeding, incubating and building companies such as Precise (acquired
by Veritas in 2003), Fundtech and MagniFire and emerging leaders like Cyber-
Ark, Bristol Technologies and Oblicore," said JVP Managing Partner Erel
Margalit. "Some of these companies are going to fit into the product offering
of larger companies and are going to be acquired while others we hope to build
into independent market leaders in their space."
MagniFire Websystems is a leading provider of comprehensive web
infrastructure security solutions. Its highly scalable and flexible
TrafficShield platform enables businesses to protect their most critical data,
applications and customer relationships with a low total cost of ownership.
Headquartered in New York with R&D facilities in Israel and sales offices in
the UK, MagniFire is backed by premier venture firms including JVP, Lucent
Venture Partners and other top tier private investors. For more information,
please visit http://www.magnifire.com.
JVP is a leading Israeli venture capital firm focusing on investments in
early stage companies in the enterprise software and networking,
semiconductors and components and mobile infrastructure sectors. With over
$680 million under management and offices in New York, London, Jerusalem and
Tokyo, JVP leverages its international presence, vast expertise and
substantial capital base to build companies with the potential to shape and
dominate global markets. To learn more about JVP, visit
About Lucent Venture Partners
Lucent Venture Partners is the venture capital subsidiary of Lucent
Technologies with offices in Murray Hill, New Jersey. Formed in 1998, the
group has invested in early-stage technology companies in high-growth
communications areas such as optical, data and wireless networking,
semiconductors, communications software, professional services and e-commerce.
For more information, go to http://www.luvp.com/about/index.html.
Lotus Public Relations