Rapid7, Inc. acquired Alcide.IO Ltd. from Elron Electronic Industries Ltd. (OTCPK:ELRN.F) and others for approximately $50.5 million.
January 31, 2021
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Rapid7, Inc. (NasdaqGM:RPD) agreed to acquire Alcide.IO Ltd. from Elron Electronic Industries Ltd. (OTCPK:ELRN.F) and others for approximately $50.5 million on January 28, 2021. The total purchase price of approximately $50 million in cash, is subject to certain adjustments. Elron said that it held 24% of Alcide, and would receive $12 million from the acquisition deal. $1.3 million of the acquisition price will be deposited in a trusteeship for 18 months to secure certain indemnity commitments to the acquiring company. The notification states that Elron, which invested in Alcide at the seed stage, will post a profit of $11.5 million on the deal. Alcide's 30-person team will join Rapid7 at its new Israeli R&D center. Most of its employees will continued to work under Rapid7, but Alcide will cease to have independent marketing and sales, and so some employees will be laid off. The deal also includes bonuses designed to keep the existing team at the company, and an undisclosed amount for expanding the Israeli development center. The acquisition is not expected to have a material impact to Rapid7's financial results for calendar year 2021.
Rapid7, Inc. (NasdaqGM:RPD) completed the acquisition of Alcide.IO Ltd. from Elron and other on January 28, 2021.
Elron Electronic Industries Ltd. is an operational holding company that focuses on building and enhancing technology companies, mainly in the field of medical devices. Its group companies include companies at different stages of development and business maturation, operating in various technology fields, such as medical device and other fields. It is involved in the management of its group companies by means of membership and providing assistance to management. It operates in the Holdings and Corporate Operations segment. It is engaged in matters of policy guidance, strategic planning, marketing, selecting and manning senior management positions, determining the business plan, approving investments and budgets, development and operational guidance, assistance in creating strategic partnerships, and the overall ongoing monitoring of its group companies' performance. Its main group companies include BrainsGate Ltd, Pocared Diagnostics Ltd. and RDC Rafael Development Corporation Ltd.