Facebook Acquires Israeli Startup ‘Onavo’ for Over $100 Million

Facebook reportedly acquired Israeli startup Onavo, which will serve as its first office in Israel.

Facebook, known for intensifying and strengthening its growing mobile business, purchased the mobile analytics company Onavo as an additional support. However, the two companies kept silent about the the terms of their deal. There were reports though that the acquisition deal is between $100 and $200 million.

Due to the acquisition, Tel Aviv-based Onavo’s data compression software, Onavo Extend, which is said to increase the mobile data plan by 500 percent with no hidden charges, will be particularly valuable to more than 100 million mobile Facebook users, wherein majority of the users are from developing countries like the Philippines and India. These users depend on basic phone technology to connect to Facebook without the need to buy a high-cost smartphone.

A spokesperson of Facebook said in a press release, "We expect Onavo's data compression technology to play a central role in our mission to connect more people to the Internet, and their analytic tools will help us provide better, more efficient mobile products.”

Onavo, which was founded in 2010, can now help Facebook in its most recent initiative to connect everyone around the world through Internet.org. Partners in the Internet.org initiative include Samsung, Ericsson, Nokia, Opera, and Qualcomm. The group aims to bring four billion people online by making internet access more affordable and more efficient to improve their lives and promote business growth.

Doors of opportunities to break into a new industry in Israel are opened for Facebook through this acquisition as well.

Guy Rosen, CEO of Onavo and Roi Tiger, CTO of Onavo said Onavo’s mobile utility apps will still run as a standalone brand and remain in Tel Aviv.

They said in a letter, "We're excited to join their team, and hope to play a critical role in reaching one of Internet.org's most significant goals -- using data more efficiently so that more people around the world can connect and share.”