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 (Figures
exclude the $4 billion acquisition of Iscar).
The most noteworthy M&A deal during 2006 was the
acquisition of Mercury Interactive Ltd. by
Hewlett-Packard for $4.5 billion. Other
significant deals included the acquisition of
M-Systems by SanDisk Corp. for $1.55 billion, the
acquisition of Lipman Electronic Engineering Ltd.
by VeriFone Holdings Inc. 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. ÊWe expect foreign
interest in Israeli firms to continue in 2007."
Venture-backed Israeli mergers and acquisitions
in 2006 totaled $2.96 billion and consisted of 45
deals. Included were the acquisition of Passave
Inc. by PMC Sierra for $300 million and the
acquisition of Disc-O-Tech Medical Technologies
Ltd. by Kyphon Inc. for $240 million (in several
stages until 2008).
In 2006, 20 Israeli companies raised $693 million
through initial public offerings on US, European,
Asian and Israeli stock exchanges. Notable
offerings in 2006: Playtech Ltd. - raised $460
million on AIM; Allot Communications Ltd. -
raised $78 million on NASDAQ and Incredimail Ltd.
- raised $49 million on NASDAQ Small Cap.
Venture-backed IPOs of Israeli firms raised $148
million in six deals including the NASDAQ
offerings of Allot Communications and Omrix
Biopharmaceuticals Ltd. ($39.6 million). The
material was supplied by IVC.