More Israel IP Communications Stories

Apple (News - Alert) is meeting with a flash storage company based in Israel to discuss its possible purchase for somewhere between $400 and $500 million, according to news reports.

If the acquisition of Anobit Technologies, located in Herzeliya, is successful, it would likely lead to increased flash storage for Apple’s mobile products. Apple may want to improve data storage capacity of iPads and iPhones, according to news reports.

“Anobit's attraction for Apple could lie in its manufacture of embedded flash controllers for smartphone and tablet computers, which improve the performance of device flash connectivity,” The Street reported in its analysis of the possible deal. “This might mesh well with Apple's mobile product data storage needs."

It would also be the biggest acquisition for Apple in 15 years. Apple has only taken part in 17 deals ever, The Street adds.

The range of the offering was first reported by Calcalist, an Israeli newspaper. It would also be the first company from Israel for Apple, according to a report from McClatchy-Tribune Information Services carried on TMCnet. It appears that the company’s estimated 200 employees would largely remain in Israel if the deal goes through, according to news reports.

In addition, The Apple Blog reports that Apple is already the world’s biggest purchaser of flash memory. “Anobit’s chip is already used in the iPhone (News - Alert), iPad, and MacBook Air,” the Apple Blog adds. “Those are the three products most crucial to Apple’s future.”

Anobit was started in 2006 with $76 million provided by such firms as Battery Ventures and Pitango Venture Capital. The company has been awarded 21 patents. Anobit revenue for 2011 is projected to be between $30 and 40 million, according to the TMCnet report.

Anobit provides flash storage for enterprise and mobile sectors, according to information posted on the company’s website. Flash makers, consumer electronics vendors and storage system providers are among those who use the company’s products.