Average deal in 2012 valued at $11 million
Israeli companies make $5.5B in exits
While global economy faces uncertainty, Israeli high-tech firms continue to attract buyers from all around the world in 2012
The year 2012 was particularly fruitful for exits by Israeli companies, with $5.5 billion in 50 transactions. In fact, a higher sum was only recorded in 2006 - $10 billion.
The figures were reported by Rubi Suliman, partner and Technology co-leader at at PwC Israel. The data show that a greater number of transactions were conducted in 2011 (63), but at a smaller financial volume ($5 billion).
An average deal in 2012 was valued at $11 million (excluding NDS which was sold to Cisco for $5 billion, as the deal is not considered an Israeli exit).
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In 2012 a deal's average price was higher than in 2011, when the average price of an exit stood at $81 million. The average price was even lower the previous year: $50 million.
According to Suliman, the high price per deal was the main engine that led to an increase in exits, as the trend is fewer transactions throughout the years – but at higher prices.
This trend points to the maturation of the Israeli high-tech market and the fact that companies reached relatively higher maturity before the exit.
Suliman further adds that 2012, like 2011, points more than anything to the strength of the Israeli high-tech industry. While the global economy is facing uncertainty, Israeli high-tech companies attract buyers and interested parties from all around the world.
The Internet sector showed a significant decline compared to 2012, but according to Suliman it will continue to serve as a growth engine for Israeli high-tech for many years to come.
While the semiconductor sector is declining as well, it is also far from disappearing.
According to Suliman, 2013's starting point has everything it takes to exceed previous years. Moreover, through a possible connection with the technological IPO market in the United States we may witness a handful of interesting IPOs by Israeli companies, which will later go on to become large multinational companies.
