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SOFTWARE (NON-INTERNET/MOBILE) | Operating Systems & Utility Software
gteko.com

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Stage

Acquired | Acquired

Total Raised

$12M

About Gteko

Gteko was founded in 1992 by Dr. Joshua ("Shuki") Glazer, the company's CEO. It specializes in automated technical support for personal computers and electronic end-user devices.

Gteko Headquarter Location

3 Hatidhar St Bet Hamillenium, 10th floor

Ra'anana,

Israel

Latest Gteko News

Microsoft owes $28.2 Million to Israel in taxes, ruling connected to 2006 acquisition of Gteko

Jun 8, 2017

Arif Bacchus Email @abacjourn 1 min ago in Latest news An Isreali court on Wednesday ruled that Microsoft needs to pay back $28.2 Million in taxes to Israel, mainly due to tax issues connected with Microsoft’s 2006 acquisition of the networking and software solution start up, Gteko. The decision could have a significant impact, as it might set precedence and impact the finances and taxation of other tech giants that buy up Israeli startups ( via Haretz.com ) The issue at heart is the fact that the Israel Tax Authority questioned part of Microsoft’s acquisition of Gteko, and the way Microsoft valued it. Through the original deal was a stock sale of $90 million, Microsoft later ended up paying an additional $26.6 million for the startup’s IP. Although Gteko argued that the second transaction was a “premium Microsoft expected from the synergies,” that the value of the IP was figured in the price Microsoft paid for the stock, this second move is what Israeli tax authorities had issues with. Judge Shumel Bronstein presided over the case, and the ruling was in favor of the Israel Tax Authority. The tax authority argued that the second transaction was a sale of business operations. Part of the judge’s ruling reads: “My conclusion is that in a substantive (or ‘functional’ sense) the transaction that the parties conducted was far more extensive than the deal described by them in the IP transaction.” Just like every other multinational corporation, Microsoft obviously tries to make the most out of every single deal made. Gteko is now a subsidiary of Microsoft, and the original case involved Gteko, and not Microsoft itself, though Microsoft will come home with the tax bill. The presiding judge said that “the value of [a] company does not ‘evaporate’ when a business ceases operations, and that the tax should fully reflect the value of its assets.”

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Gteko Patents

Gteko has filed 2 patents.

patents chart

Application Date

Grant Date

Title

Related Topics

Status

12/30/2009

9/30/2014

Network management, Computer peripherals, System administration, Automation, Web applications

Grant

00/00/0000

00/00/0000

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Application Date

12/30/2009

00/00/0000

Grant Date

9/30/2014

00/00/0000

Title

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Related Topics

Network management, Computer peripherals, System administration, Automation, Web applications

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Status

Grant

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