After a Two-Years Slump, Israeli Tech M&A, IPOs, Up 110%
U.S. buyers accounted for the majority of deals in 2017, with as many as 33 deals valued at $4.1 billion, according to a new report
Mergers, acquisitions and initial public offerings (IPO) of Israel-based technology companies totaled $7.4 billion in 2017, a 110% increase from 2016, according to a report published by accounting firm PwC Israel Wednesday.
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While an improvement on a 2016 five year low, 2017 still brought in only 50% of the funds brought in in 2014, when merger and acquisition (M&A) deals and IPO of Israeli companies totaled $14.85 billion, and deal size averaged $212 million. Overall, 2017 brought in less money in M&A and IPO than 2015, with a total of $10.69 billion, and 2013, with $7.64 billion.
Yaron Weizenbluth, Hi-tech Partner in PwC Israel. Photo: PR Overall, 70 such deals took place in 2017, compared with 55 deals in 2016. The average deal value was $106 million in 2017, up from $64 million the previous year.
PwC did not calculate in the report the year's two most significant deals, the acquisition of automotive chip designer Mobileye by Intel for $15.3 billion and the acquisition of NeuroDerm Ltd. by Mitsubishi Tanabe Pharma Corporation for $1.1 billion, as both were public when bought.
- SEC Says Mobileye Founders’ Insider Trading Testimony Not Credible
- Mitsubishi Tanabe Pharma Finalizes $1.1 Billion Buy of Israel-Based NeuroDerm
- ForeScout Updates Prospectus, Targets a $942 Million Valuation for IPO
Eleven Israel-based companies raised $414 million in initial public offerings in 2017, according to the report. The largest equity issue this year was completed by ForeScout Technologies Inc., which raised $116 million on Nasdaq, reflecting a market capitalization of $800 million.
2017 saw eleven acquisitions of Israeli technology companies with a tag price of over $250 million each.
