Exits involving Israeli and Israel-related high-tech companies in 2011 totaled $5.23 billion, the IVC Research Center reports. M&A deals involving Israeli and Israel-related companies that were acquired or merged were valued at $5.1 billion, a 134% increase from $2.18 billion in 2010 and the second highest amount in a decade, after the $10 billion worth of deals in 2006.
IVC added that, only $126 million was raised in five IPOs, down 5% from $133 million raised in 11 IPOs in 2010.
IVC Research Center CEO Koby Simana said, "The M&A route continued as the preferred liquidity channel for investors in 2011, and we expect it to remain as such in 2012. The financial needs of Israeli technology companies coupled with the shortage of investor capital indicate that more Israeli companies can be expected to go the M&A route in 2012."
IVC noted that 85 Israeli companies were acquired or merged in 2011, 27% more than the 67 companies that were acquired or merged in 2010, and 4% more than the previous five-year average of 81.
In addition, IVC reported that the average deal size increased nearly 85% to $60 million from $32.5 million in 2010. This increase in deal size reflects a relatively high number of deals above $100 million, with 18% of the number of deals accounting for 75% of total M&A deal proceeds. Five M&A deals exceeded $300 million, and one acquisition of online advertising company MediaMind by DG surpassed the $500 million mark.
VC-backed M&A deals (33) totaled $2.52 billion, a 102% increase from $1.25 billion (26) in 2010. Nine of the 15 deals above $100 million had been VC-backed.
The IVC report concludes, saying that in the last decade, Israeli high-tech companies raised about $15 billion from investors, compared with more than $37 billion received in M&A and IPO exits.
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2012
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