9 Important Recent Developments in Israel's Growing Tech Sector

Just how attractive is the Israeli technology sector? Check out some recent activity.
By Steven Schoenfeld ,

Just how attractive is the Israeli technology sector?

Recent capital markets, mergers and acquisition activity demonstrates how Israel is a key destination for global companies seeking to acquire cutting-edge technologies.

Here's a partial list of some recent developments:

1. Israeli networking and data infrastructure provider Silicom will acquire ADI Engineering, a privately-held, U.S.-based provider of high performance Intel-based products targeted at the internet of things, cloud computing and virtualization markets.

2. European satellite operator Eutelsat Communications and social media giant Facebook are working jointly to deliver satellite broadband Internet to connectivity to sub-Saharan Africa using an Israeli satellite. The firms have reached a multi-year agreement with satellite communication firm Spacecom to use the entire broadband payload of the AMOS-6 satellite due to come on stream in 2016.

3. CyberArk Software signed a definitive agreement to acquire privately held Israeli software company ViewFinity Inc. which provides privilege management and application control software. The acquisition is for $30.5 million in cash.

4. Telit Communicationswon a contract valued at $30 million to supply CDMA 450 MHz modules to a leading global electricity meter manufacturer for a smart electrical network project in the Netherlands. Telit's internet of things modules are at the core of a new generation of smart electricity meters that Dutch utility companies will deploy nationwide over five years starting in 2016.

5. FIMI Opportunity Funds, an Israeli private equity firm, is bringing a partner into Rivulis Irrigation (formerly the water division of John Deere). The new partner, Indian company Dhanna Engineering, is acquiring 20% of Rivulis for $34 million, while FIMI will retain the remaining 80%. The deal reflects a $170 million value for Rivulis, six months after FIMI acquired Rivulis for $60 million.

6. Novartis International is investing an additional $15 million in Israeli stem cell company Gamida Cell. Based in Jerusalem, Gamida Cell develops cellular and immune therapies for the treatment of cancer and orphan genetic diseases.

7. Gilbarco Inc. acquired Israeli marketing intelligence company Odysii Technologies Ltd. Tel Aviv-based Odysii has pioneered an analytics and consumer messaging platform at the point of purchase designed to be integrated with the point of sale, loyalty programs, mobile phones, and other consumer applications. No financial details were disclosed but the deal is reportedly worth $30-to-$40 million.

8. Israeli geothermal energy developer Ormat Technologies Inc.signed a strategic collaboration agreement with Japan's Toshiba Corp. in geothermal power generation systems and related equipment. The two companies will explore and develop strategic opportunities that will enable them to offer potential customers a more competitive solution for comprehensive supplies and services related to geothermal developments, from resource assessment, field development, power plant engineering, procurement and construction to power plant operation.

9. Microsoft will buy Israeli cyber security company Secure Islands for a reported $100-150 million. The acquisition will be Microsoft's fifth Israeli acquisition this past year and its third acquisition of an Israeli cyber security company over that period.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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