Big Deals in Israel

IVC’s 2006 Summary: Israeli High-Tech M&As valued at $10.6 billion

From IEICI, December 28, 2006…

The following summarizes initial public offering and merger and acquisition activity of Israeli high-tech companies in 2006.

The information is derived from the from the IVC Online Database, developed and maintained by the IVC Research Center, which for more than ten years has been at the forefront of venture capital and private equity research in Israel. Complete data will be available in the IVC 2007 Yearbook, scheduled for publication in April, 2007.

M&A activity involving Israeli companies that were either acquired or merged totaled $10.58 billion in 2006 in 76 deals. The total dollar volume was significantly higher than in previous years and was a third of the $35.8 billion for Israeli high-tech M&A deals since 2000.

The most noteworthy M&A deal during 2006 was the acquisition of Mercury by Hewlett-Packard for $4.5 billion. Other significant deals included the acquisition of M-Systems by SanDisk for $1.55 billion, the acquisition of Lipman by VeriFone for $793 million.

According to IVC General Manager Guy Holtzman, “Most Israeli high-tech companies that were merged or acquired are providing their acquirers with highly accomplished R&D centers, underpinned by strong technology and outstanding human resources. While many talk about India and China or even Eastern Europe, Israeli entrepreneurship and the Israeli experience still have distinct advantages over the near term, as Israeli managers have prepared to meet the global competitive challenges. We expect foreign interest in Israeli firms to continue in 2007.”

In 2006, 20 Israeli companies raised $693 million through initial public offerings on US, European, Asian and Israeli stock exchanges.

IVC Research Center is Israel’s leading research center providing business leaders with an unmatched wealth of data on Israeli venture capital, private equity and high-tech industries. Among IVC products and publications are the Israel Venture Capital Journal (IVCJ), IVC Yearbook and online database containing over 5,000 Israeli high-tech companies, venture capital funds, investment companies, as well as news updates


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