One-year-old Israeli AI startup with six employees acquired for estimated $100 million
Rocket Software has acquired Geniez AI, whose technology uses AI agents to help enterprises manage and modernize mainframe systems.
U.S. software company Rocket Software has acquired Israeli startup Geniez AI in a deal valued at up to $100 million, according to estimates. The two founders, both graduates of Mamram, the Israel Defense Forces’ computing unit, received the acquisition offer one year after announcing their Seed round, with the company having a team of only six employees.
In September 2025, Geniez AI raised $6 million in a Seed funding round co-led by StageOne Ventures and Canapi Ventures. CEO Gil Peleg and co-founder Dan Shprung previously founded Model9, a mainframe data management startup acquired by BMC Software in 2023.
Geniez AI develops generative AI technology designed to help enterprises manage and modernize mainframe systems, the large-scale computers that underpin critical business operations across industries, including financial services. Its AI agents operate directly on mainframes, monitoring live systems, diagnosing incidents and executing workflows using natural language.
As part of the acquisition, Geniez AI’s technical leadership and engineering team will join Rocket Software to help accelerate its AI initiatives, including new capabilities for Rocket EVA, the company’s agentic AI platform for core systems. The companies aim to move mainframe management away from processes that depend heavily on specialized expertise toward AI-assisted operations that make complex systems easier to understand, manage and modernize.
Rocket Software said the acquisition would help enterprises address the shortage of skilled mainframe professionals, reduce operational complexity and automate mission-critical workflows. The combined technology is intended to help teams turn institutional knowledge into actionable intelligence, surface insights and take action across core systems while maintaining appropriate security, governance and control.
“Geniez AI was founded on the belief that GenAI-based business applications can fundamentally change how enterprises understand and operate their mainframe environments,” Peleg said. Joining Rocket, he added, would give the company the scale, customer reach and mainframe expertise needed to bring its technology to more organizations and help shape the next era of intelligent, mission-critical operations.
Milan Shetti, president and CEO of Rocket Software, said the acquisition would accelerate the company’s efforts to help enterprises securely apply agentic AI to their systems. He described the deal as part of Rocket’s broader strategy to modernize core systems while extending AI capabilities to the critical workloads that run on them.
Rocket Software is a privately held U.S. company headquartered in the Boston area that specializes in enterprise software modernization, including mainframe systems. The company says it serves more than 13,500 customers, works with 850 partners and employs over 3,000 people worldwide. It is a portfolio company of Bain Capital Private Equity.
