19 November 2012

Commtouch acquires Berlin-based eleven GmbH

- eleven provides mail-based Security-as-a-Service (SecaaS) solutions 
- Commtouch will retain the eleven brand in the DACH region 

McLean, VA – 19 November 2012 – Commtouch®, a leading provider of Internet security technology and cloud-based services, today announced it acquired Berlin, Germany-based eleven GmbH. The acquisition was completed on Friday, November 16, 2012. 

eleven is well-known throughout Germany as the leading provider of mail-based Security-as-a-Service (SecaaS) solutions, capturing more than 36 percent of the German market for managed email security. In addition to managed email security and archiving solutions, eleven also provides advanced on-premise email solutions and services to selected customers, and its customer base includes some of the largest organizations in Germany, including BMW, SAP, Siemens and Deutsche Telekom / T-Online. The acquisition of eleven enables Commtouch to accelerate delivery of private label cloud-based security solutions specifically designed for OEM and service provider markets. In addition, Commtouch’s global reach should accelerate sales and adoption of this leading security technology developed by eleven. 

Commtouch will continue expanding eleven’s brand and presence in Germany, Austria and Switzerland while also supporting the needs of all of eleven’s valued customers, channel partners and distributors through the combined resources of both companies. Outside of Germany, Commtouch continues to focus on its primary OEM business and private labeling of cloud based Security-as-a-Service solutions. 

Commtouch will retain the eleven brand in the DACH region. Eleven’s 60 employees will remain with the company. Robert Rothe, eleven CEO and founder, also joins Commtouch’s executive team as Chief Technology Officer and head of Commtouch’s operations in Germany. 

“eleven’s proven cloud-based technology delivers tremendous capabilities that will accelerate Commtouch’s strategy to become a cloud-based Security-as-a-Service solution provider for the OEM and service provider markets,” said Shlomi Yanai, CEO of Commtouch. “Both the people and the products at eleven will serve a significant role in our continued effort to grow Commtouch by offering the most advanced and innovative security technology. We also look forward to serving all of eleven’s current customers and partners and we are committed to maintaining its leading stance in Germany. I welcome all of eleven’s employees to the Commtouch family and look forward to the valuable contributions of Robert Rothe in his new role as CTO at Commtouch.” 

For the trailing 12-month period ended October 31, 2012, eleven generated revenues of approximately $8.0 million (€6.3 million) and was profitable. The closing purchase price included net cash of $9.2 million (€7.2 million) and approximately $2.1 million worth of Commtouch restricted shares. The earn-out component will be paid out through 2015 based on the successful achievement of certain performance-based revenue goals. 

Commtouch Software Ltd. (NASDAQ: CTCH) is a global developer and provider of messaging security, Web security and antivirus technologies. Commtouch is headquartered in Netanya, Israel, with a subsidiary in Sunnyvale, Calif. 

Source: Commtouch