Ambassador (ret.) Yoram Ettinger, “Second Thought: a US-Israel Initiative”
Straight from the Jerusalem Boardroom #189, January 17, 2014
1. (Bloomberg, Gwen Ackerman and David Wainer, January 8, 2014): “Israel’s technology industry is growing up and the stock market is benefitting. Investors and entrepreneurs are increasingly choosing initial public offerings (IPO) over buyouts, with eight Israeli companies raising $361MN in 2013, the most since 2007. While mergers and acquisitions still represent the highest proportion of transactions, with $6.3BN in 2013, Israeli companies opting for listings from London to NY are closing the gap….
Owners of Israeli companies no longer seek to sell their early-stage companies to get a speedy return on their money…. Israel’s Enzymotec raised $71MN in September, and its shares have almost doubled since then. Israel’s Eix.Com garnered $127MN from investors in November; Israel’s largest IPO in the US in more than six years, and its stock is up 48%. Technology companies contribute about 80% of Israel’s industrial exports…. Among the largest Israeli technology companies changing hands in 2013 were the purchase of Waze by Goggle for $966MN and Cisco’s acquisition of Intucell for $475MN. Other companies have resisted buyers. Check Point grew by raising money from selling shares, multiplying in value since its 1996 NASDAQ IPO and is now worth $13BN.”
2. In 2013, twenty Israeli companies were acquired, for over $4BN, by foreign companies, compared to $3.9BN in 2012, $5BN in 2011, $1.6BN – 2010, $1.3BN – 2009, $2.6BN – 2008, $3.6BN – 2007, $10.1BN – 2006, $3.4BN – 2005 and $0.7BN in 2004 (Globes Business Daily, Nov. 13, 2013).
3. In 2013, Israeli companies raised $1.565BN on Wall Street, compared to $627MN in 2012, $1BN – 2011, $400MN – 2010, $190MN – 2009, $200MN – 2008, $1.84BN – 2007, $974MN – 2006, $1.16BN – 2005 and $1.25BN in 2004 (Globes, Nov. 13, 2013).
4. The NY-based International Flavors and Fragrances (IFF) acquired Israel’s Aromor for $88MN (Globes, Jan. 16). Canada’s Dorel acquired Israel’s Tiny Love for $50MN (Yedioth Achronoth, Jan. 12).
5. Israel’s uTest’s $43MN round of private placement was led by Goldman Sacks, joined by the Baltimore-based QuestMark Partners, Foster City, CA-based Scale Venture Partners, Waltham, MA-based Longworth Venture Partners, Boston-based Egan Managed Capital and Mesco, Ltd. (Globes, Jan. 15). Israel’s Sensible Medical’s $20MN round of private placement was led by Boston Scientific, joined by China’s Long Tec Medical Technology and Wayne, PA-based SCP Vitalife (Globes, Nov. 12). Israel’s Yotpo’s $11MN round of private placement was led by Bloomberg Capital
6. The London Financial Times’ John Reed (Jan. 3, 2014): “Israel is hedging its bets, realigning itself in the world…. A broad strategic push is underway, into the faster growing emerging markets [in China, India and Latin America], where Israel hopes that [unlike Europe] there will be more interest in its technology than the conflict over its borders. ‘Israel cannot put all its eggs in one basket; we need to scatter them,’ said Israel’s Economy Minister, Naftali Bennett…. [The Chinese] want to talk about three things: Israeli technology, technology and technology…. Bennett is closing Israeli trade missions in Sweden and Finland and opening missions in China, India and Brazil…. He …read more