Ness Technologies buying U.S. startup Blueflame for $5 million

E-solutions startup is the only success in the OTC-traded Aztec group
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Tel Aviv-based Ness Technologies bought the assets of United States firm Blueflame for $5 million.

Blueflame, a subsidiary of Aztec Technology Partners (OTC:AZTC.OB), will be renamed Ness United States. It will be jointly held by Ness Technologies (75%) and Blueflame's executives and employees (25%).

Blueflame, founded in 1985, specializes in e-solutions. It develops integrative Internet based systems used in pharmaceutics, wireless communication, Internet infrastructure, business intelligence, knowledge sharing and management, document management, organizational portals, e-commerce and support for major corporations.

Its business partners include BEA Systems (Nasdaq:BEAS), Sun Microsystems (Nasdaq:SUNW) and Microsoft (Nasdaq:MSFT).

Ness USA will continue to serve Blueflame clients such as Pfizer (NYSE:PFE), Canon (NYSE:CAJ), Johnson & Johnson (NYSE:JNJ), AT&T Corporation (NYSE:T), Morgan Stanley Dean Witter and the New York Times.

Blueflame posted 2000 sales of $30 million. The company, which has been profitable since its establishmentm it employs over 100 workers.

Sources at Ness say that buying Blueflame suits the company's strategy to expand its international operations, particularly in Europe and the U.S. The Ness group today includes Netherlands-based Ness Benelux, Ness S.A. in Switzerland and Ness U.K.

As Aztec is currently in chapter 11, the acquisition needed and received the approval of the court in Boston, Massachusetts.

Ness CEO, Raviv Zoller, said Blueflame has a great reputation and that it proved profitable in all its years of operation. "Because of the trouble the parent company has found itself in, Blueflame has become particularly attractive to us. We are currently looking into buying companies already active in order to expand our international client base."

Ness Technologies, a privately-founded by the Wolfson family, incorporates six software houses employing 2,000 programmers. It is the largest IT company in Israel.