Rocket Software bought Geniez AI, a six-person Israeli startup building mainframe AI agents, in a deal announced Oct 13 that CTech puts at up to $100 million.
Rocket Software has acquired Geniez AI, an Israeli startup that builds AI agents for mainframe systems, in a deal announced on October 13, 2026. Rocket did not disclose terms, but Calcalist's CTech estimates the price at up to $100 million for a company with six employees. The Geniez AI team, led by CEO Gil Peleg, joins Rocket to work on its Rocket EVA platform.
What does Geniez AI actually build?
Geniez AI builds AI agents that run directly on mainframe computers, where they monitor live systems, diagnose incidents and carry out workflows from plain-language instructions, according to Rocket Software's announcement. A mainframe is the large, long-lived class of computer that many banks, insurers and governments still use for core records and transactions.
An analysis by Beri says the Geniez connector let several large language models read data held in IBM mainframe stores such as Db2, IMS and VSAM, under the machine's existing security controls.
Who are the founders behind Geniez AI?
Gil Peleg and Dan Shprung founded Geniez AI in 2025 after building an earlier mainframe company, Model9, which BMC Software acquired in 2023. Peleg is CEO and Shprung is co-founder. Both are graduates of Mamram, the Israel Defense Forces' computing unit, according to CTech.
Geniez AI raised a $6 million seed round in September 2025, co-led by StageOne Ventures and Canapi Ventures. If the CTech estimate holds, the price is up to roughly 16 times that seed capital, a figure that is arithmetic on an estimate, not a reported return.
Olam's study of the Israeli cybersecurity footprint in America describes a talent-recycling pattern in which founders of acquired Israeli companies start new ventures within 12 to 24 months of their earn-outs expiring. Geniez was founded about 28 months after the April 2023 Model9 sale, on the dates reported by Beri and a startup directory, so it fits the pattern loosely.
Why does Rocket Software want agents on the mainframe?
Rocket Software says the workforce that manages mainframes is thinning, and it frames the deal as a way to close that skills gap with AI agents that capture institutional knowledge. Rocket says it serves more than 13,500 customers and 850 partners and has more than 3,000 employees.
The Geniez team will help build Rocket EVA, the company's agentic AI platform for core systems. Beri reports that Rocket is majority-owned by Bain Capital Private Equity.
How does the Geniez price compare with other 2026 Israeli exits?
Geniez AI sold for a fraction of the multibillion-dollar cybersecurity deals that defined the past year, but for a high multiple of the capital it raised. Olam's study of the Israeli cybersecurity footprint counts $64.75 billion across the CyberArk, Wiz and Armis acquisitions in 13 months.
Closer in size are the two deals in Olam's report on Israeli startup exits below peak. Both sold for less than their earlier private valuations, while Geniez moves the other way, with a small price set against a small seed round.
| Deal | Buyer | Price | What the buyer gets |
|---|---|---|---|
| At-Bay | Munich Re | $575 million enterprise value | A top-ten US cyber insurer |
| Bluevine | Valley National Bancorp | About $340 million | $2.1 billion in digitally sourced deposits |
| Geniez AI | Rocket Software | Up to $100 million (CTech estimate) | A six-person mainframe AI team and its technology |
What does the Geniez exit say about Israel's AI sector?
The Geniez exit shows Israeli AI value being captured in applications that sit on top of existing models, not in standalone foundation models. Olam reported in July that Amnon Shashua's exit from AI21 Labs was the founder-level confirmation that Israel's standalone large language model era has closed.
Geniez took a different bet, according to Beri's description: a connector that lets models from several providers work on mainframe data. That reading is Olam's inference from a third-party analysis, not a statement from Rocket or the founders.
What is still unknown about the deal?
Neither company has said what Geniez AI products will cost or whether Geniez will stay on sale as a standalone product. Beri's analysis lists four open questions: whether Geniez remains available on its own, whether its model list survives inside EVA, what the pricing is, and what support terms apply to existing Geniez contracts.
The deal is a team-first acquisition of engineers and a proven founding pair. Treat the $100 million figure as CTech's estimate until Rocket or the founders confirm it.
Where can readers follow Israeli AI deals on Olam?
Olam tracks Israeli AI companies and the infrastructure around them in its Israeli AI companies and infrastructure coverage.
How we report: Olam stories draw on public filings, company disclosures and named sources, checked by our editors. Read our methodology · Corrections
