Rocket Software said on 13 October 2026 that it has acquired Geniez AI, a young Israeli company that builds AI agents for mainframe computers [1]. Rocket did not say how much it paid. Israeli business site Calcalist reported that the deal values Geniez at up to $100 million, citing estimates [2].
What a mainframe is, and why it matters
A mainframe is a large, very reliable computer that big organisations use for their most important work. Banks, insurers, airlines, retailers and governments run payments, bookings and account records on them, often handling huge numbers of transactions every second. Many of these systems were built decades ago and still run software written in older programming languages.
That creates a problem. The people who know these systems well are retiring, and the systems can be hard to connect to newer cloud tools. “Modernising” a mainframe means updating that software, linking it to newer systems or moving some of the work elsewhere, without breaking services that cannot go down. Companies are doing this to cut costs, fill the skills gap and get their data into newer tools, including AI.
What Geniez makes
Rocket describes Geniez as a generative AI company whose “expert AI agents” work “directly on the mainframe” [1]. According to Rocket, the agents watch live systems, help work out what went wrong when something breaks, and carry out multi-step tasks that staff ask for in everyday language. The idea is to help mainframe teams, not replace them.
Rocket says Geniez’s technical leaders and team are joining Rocket to speed up its AI work, including new features in Rocket EVA, which Rocket calls its agentic AI platform for core systems [1].
What the two companies said
Milan Shetti, Rocket’s president and chief executive, said the deal “is about continuing to transform what is possible on the mainframe”, and that it will help businesses use AI agents on their systems “with speed, confidence, and control” [1].
Gil Peleg, Geniez’s chief executive and co-founder, said joining Rocket gives the startup “the scale, customer reach, and deep mainframe expertise” to bring its work to more organisations [1].
The startup behind the deal
Calcalist reported that Geniez has only six employees and that the offer came about a year after its seed round [2]. According to Calcalist, Geniez raised $6 million in September 2025 in a round co-led by StageOne Ventures and Canapi Ventures [2].
This is not the founders’ first mainframe company. Calcalist reported that Peleg and co-founder Dan Shprung previously founded Model9, a mainframe data company that BMC Software bought in 2023, and that both are graduates of Mamram, the Israeli military’s computing unit [2].
About Rocket
Rocket says it is privately held, owned by Bain Capital Private Equity, and has more than 13,500 customers, 850 partners and over 3,000 employees [1]. It is based in Waltham, Massachusetts.
What this means
- The price is an estimate. Rocket did not disclose terms. The “up to $100 million” figure comes from Calcalist’s estimates.
- It is mostly a team purchase. With six people, Geniez brings expertise and technology more than revenue, and Rocket is folding both into Rocket EVA.
- AI agents are reaching old systems. Vendors now pitch agents as a way to run and update the mainframes that still handle much of the world’s banking and booking work.
Sources
- Rocket Software, “Rocket Software Announces Acquisition of Geniez AI to Accelerate Agentic AI for Mainframe Modernization”, 13 October 2026. https://www.rocketsoftware.com/en-us/news/rocket-software-announces-acquisition-of-geniez-ai-to-accelerate-agentic-ai-for-mainframe-modernization
- Calcalist / Ctech (Elihay Vidal), “One-year-old Israeli AI startup with six employees acquired for estimated $100 million”, 13 October 2026. https://www.calcalistech.com/ctechnews/article/996lzw73e
