Wednesday, November 30, 2011

Profitect strengthens Israel-Mass. link with R&D move

By Kyle Alspach, Boston Business Journal

Profitect, a venture-backed firm whose software aims to “amplify” profits for retailers, said it plans to move its research and development operation to Massachusetts from Israel and hire new R&D staff.

The Waltham company declined to offer specific figures for how many jobs would be added in Massachusetts, saying only that the R&D staff here would grow by 50 percent.

Profitect also said it’s doubling its leased space at 1601 Trapelo Road in Waltham as part of the expansion, to 8,000 square feet from 4,000 square feet.

In the announcement, company CEO Guy Yehiav said the expansion in Waltham is a response to increased demand from North American retailers. “The move will allow us to more effectively meet the needs of our growing customer base and will bring our research and development team together under one roof,” he said.

Yehiav also cited the close business ties between Israel and Massachusetts, which he noted were highlighted by a business delegation from the state to Israel in March, led by Gov. Deval Patrick.

Profitect is backed by Cedar Fund (based in Israel, but with a Waltham office) and Israel-based Genesis Partners. The company last raised financing, of $5.5 million, from the two investors in 2009.