McKinsey Buys “One In 1,000” Israeli AI Startup

The global management consulting firm McKinsey & Company has acquired Tel Aviv-based AI and machine learning startup Iguazio.

It is McKinsey’s first acquisition in Israel. The cost was not disclosed but has been estimated at $50 million. Iguazio has reportedly attracted $72 million of investment in three funding rounds.

McKinsey said it chose the company and its team of over 70 data and AI experts after analyzing over 1,000 companies worldwide.

“McKinsey will be able to accelerate and scale AI deployments dramatically with the addition of Iguazio’s technology,” the company said in a statement.

“After analyzing more than 1,000 AI companies worldwide, Iguazio was identified as the best fit to help us significantly accelerate our AI offering – from the initial concept to production, in a simplified, scalable and automated manner.

Asaf Somekh, Iguazio’s founder and CEO said on the company website: “Eight years ago, when I founded Iguazio together with my co-founders Yaron Haviv, Yaron Segev & Orit Nissan-Messing, I never thought I would be making this announcement on our company blog:  McKinsey acquired Iguazio!

“When we first embarked on this journey, we realized that while AI has the ability to transform any industry – from banking to retail to manufacturing.

“I’m so proud of each and every one of the Iguazio team members for their commitment, dedication, talent and loyalty to making the company the best it can be.”

Iguazio will work with London-based QuantumBlack, an AI company bought by McKinsey in 2015, to provide clients with industry-specific AI solutions which are said to be five times more productive, eight times faster from proof-of-concept to production and twice as reliable.