Mobileye Brought Israeli Tech Exits to $23 Billion in 2017
3 January, 2018
IVC analysis reveals that the number of mergers and acquisitions below $1 billion dropped by 19% compare to 2016. Ninety Israeli high-tech companies were acquired or merged for a total of $4.67 billion in 2017
Photo above: Intel CEO (left) with Mobileye CEO
The Israeli high-tech exit activity soared to $23 billion in 112 deals during 2017, as a result of two mega-deals of more than $1 billion each, capturing 72 percent of the total amount. One was the biggest technology deal ever in Israel: Mobileye was acquired by Intel for $15.3 billion. The second was the sale of Neuroderm to Mitsubishi Tanabe Pharma for $1.1 billion. Excluding these two mega-exits, the total amount reached $6.6 million, an increase of 19%, compared to 2016.
The number of exits dropped 8 percent in 2017 compared to 2016; Excluding buyouts and exits above $1 billion, a major decrease was seen during 2017 in the number of non VC-backed exits; 57 deals – the lowest in the past 5 years. The value of non VC-backed exits continued to decline for the fourth year, down to $2.22 billion in 2017. VC-backed exits stayed on course, with 44 exits in 2017 totaling $2.88 billion.
The IVC-Meitar study revealed a decrease of 18% in the number of small to mid-range deals (up to $100 million), and more than 60% increase in the the number of large size exits above $100 million each. “This report supports the notion that Israel’s strength is in innovation,” said Benzi Segev, IVC Research Center CEO. “The high valuations of the 13 Cyber M&A deals performed in 2017 prove that the Israel cyber supply innovation solutions to conservative industries.”
In 2017, 49 Israeli high-tech companies performed 68 M&As globally, similar to the past four years. However, the capital volume reached only $1.17 billion, compared to $3.46 billion in the M&As of 2016. This decline was caused by the absence of large deals in the software and Internet sectors, responsible for the majority of the M&A amounts in 2014-2016. The $200 million acquisition of Juno Lab by Gett was the largest deal among Israeli acquirers in 2017. Totally, the number of exits in communications dropped 29% and the number of Internet exits dropped 28%.
IVC analysis reveals that the number of mergers and acquisitions below $1 billion dropped by 19% compare to 2016. Ninety Israeli high-tech companies were acquired or merged for a total of $4.67 billion in 2017, compared to $5.08 billion in 111 deals in 2016.
For more information: www.ivc-online.com