It is commonplace to note the vigorous market for inbound investment and M&A transactions involving high-tech companies in Israel. Hardly a week goes by without a deal. Between 2002-2011, Israeli high-tech companies raised $15 billion from investors, and in the same period owners received more than $37 billion in proceeds from M&A and IPO exits. There were approximately 85 acquisitions in 2011 alone. These trends have continued into 2012.
However, until recently, the vast majority of M&A activity in Israel was strategic and focused in the technology space. But a number of recent developments foretell two new trends: (1) the emergence of financial buyers, including private equity buyout funds and investors playing in the distressed space, to complement the existing strategic M&A activity in Israel; and (2) increased activity in a plethora of business sectors in addition to high-tech. My article on Law360.com – “In Israel, Expect More From Foreign Buyout, Distressed Funds” – discusses these developments.