Published On: Mon, Jan 13th, 2014

Owners To Inject NIS 50 Million ($14.2 Million) Into troubled Ness Technologies

Citi Venture Capital International acquired Ness for $300 million in 2011.
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“In addition to the measures that we are implementing, our shareholders are also contributing, and are injecting an additional NIS 50 million into the company, ” said Ness Technologies Israel Ltd. CEO Shachar Efal in a letter to employees, a copy of which “Globes” has obtained. In the letter, entitled, “Preparing for 2014″, Efal lists additional layoffs and reductions in employment terms in the IT services company, reflecting the hard times for Israel’s computer services industry.”The capital injection will strengthen the company and protect most of the jobs, support our ability to build growth engines, and to offer the best response to the challenges of our customers, ” added Efal.

Citi Venture Capital International (CVCI) acquired Ness for $300 million in 2011. Its capital injection is an indication of the company’s difficulties in maintaining its business in hard times. “We face many challenges in 2014 in view of the difficult conditions in the integration and IT market, ” says Efal. “The trend in our industry that began in 2013 is one of contraction, from the slashing of IT budgets and projects, through rising competition, to requests for price reductions by customers.”

 

Published by Globes [online], Israel business news – www.globes-online.com 

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