Poalim Ventures, the venture capital arm of financial services provider Poalim, exited Red Bend Software, a US-based producer of software for connected devices, after it was acquired by audio equipment maker Harman yesterday.
Harman paid $99m in stock and $71m in stock for Red Bend, and the company’s shareholders are also eligible for a cash earn-out of up to $30m if Red Bend can meet certain milestones by the first quarter of 2017.
Red Bend’s software management and virtualisation technologies, centred on cybersecurity, are used in mobile devices and connected car technology.
The company had raised $34m as of 2008, according to Boston Business Journal, and its other backers included Coral Capital Management, Greylock Partners, Pitango Venture Capital and Carmel Ventures.
Poalim Ventures, which invested in Red Bend in 2004, is seemingly defunct, having made no publicly disclosed investments for at least five years.
Harman revealed the acquisition at the same time as internet-of-things software provider Symphony Teleca, for $780m. Symphony Teleca was backed by private equity firms Symphony Technology Group and TH Lee Putnam Ventures.