IBM has bought Tel Aviv-based XIV, a privately held storage technology company for an undisclosed sum.
"This is about IBM further strengthening its infrastructure portfolio," said Daniel Powers, vice president of mergers and acquisitions at IBM System Storage.
IBM said the deal would boost its position in emerging storage opportunities such as Web 2.0 applications, digital archives and digital information. Local media reported that IBM was paying $300 million to $350 million for XIV, which was founded in 2002.
XIV and its 50 employees will become part of IBM's System Storage unit. IBM, which has been operating in Israel since 1949, has between 700 and 800 employees working in research and development in Israel.