July 11, 2018 / 7:09 AM / a year ago

Israeli high-tech M&A up in H1 2018, though firms shift to fundraising

JERUSALEM, July 11 (Reuters) - Israeli high-tech exits totalled $6.2 billion in the first half of 2018, up from nearly $2 billion a year earlier, mostly due to two very large acquisitions, Israel Venture Capital Research Center and Meitar law firm said in a report on Wednesday.

The average exit - acquisitions and public offerings - in the period climbed to $107 million from $31 million a year ago, though the number of exits fell 20 percent, in line with a downward trend that started in 2015, the report said. There were only three IPOs in the period, down from eight a year earlier.

The half-year data was boosted by KLA-Tencor Corp’s acquisition of fellow semiconductor equipment maker Orbotech for $3.4 billion, and private equity firm Permira’s $1 billion deal to buy video software business NDS.

“In recent years, there has been an increase in the number of companies raising a significant amount of high-value capital,” said Alon Sahar, partner at law firm Meitar Liquornik Geva Leshem Tal.

“In contrast to these figures, we are seeing a decline in the number of merger and acquisition transactions in general, and a decline in the number of companies operating in the direction of an IPO on Nasdaq,” he said. (Reporting by Ari Rabinovitch; Editing by Tova Cohen)

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