IPOs and mergers and acquisitions activity in Israel surpassed records rising 520% to 82 billion for 2021. The previous rate was $15.4 billion for 2020. This year saw 171 deals for Israeli startups compared to 60 the previous year. Of this total, 99 were acquisitions and 72 were IPOs and SPACs (special purpose acquisition companies).
The record-breaking performance demonstrates the resilience of the Israeli tech sector in the face of the COVID outbreak and its successive waves of infection caused by the delta and omicron variants. It is not a coincidence that the tech sector showed incredible strength at the same time that Israel’s economy grew by 7% with a raised forecast by the OECD. This demonstrates that the tech industry is the locomotive for the economy, and many of the most popular Israeli investments are tech sector.
Exits are a way of measuring IPOs, or initial public offerings and mergers and acquisitions. Some of the exits are SPACs or special purpose acquisition companies–these are companies that are formed for the purpose of acquiring companies or becoming takeover targets themselves.
Ironsource, Monday.com and SentinelOne top the Israeli IPO List for 2021
The Israeli IPO with the highest valuation was Ironsource which made its initial offering at $11 billion. This app services company merged with SPAC Thomas Bravo Advantage before going public on the New York Stock Exchange in June.
Ironsource calls itself the “leading business platform for the app economy.” It offers services for app developers, mobile operators and company leaders to develop and use apps to scale businesses and to help them run more efficiently. The platform is designed to advise clients on ROI-positive campaigns that will provide convenient services to their customers.
Another highly rated Israeli IPO in 2021 was SentinelOne, which completed its IPO on the NYSE with a valuation of $9 billion. SentinelOne calls itself the autonomous cybersecurity company “built for what’s next.” Its Singularity XDR platform uses AI for detection, response and threat hunting.
Monday.com premiered on the Nasdaq with a valuation of $6.8 billion. The company provides marketing, sales, project management and inventory solutions for businesses.
Momentum in M&A Activity
Mergers, acquisitions and SPAC activity along with IPOs also saw tremendous growth in 2021. Israel genealogy platform, MyHeritage, was purchased by Francisco Partners for $$600 million. This site gives visitors insight into their ancestry with access to family trees, documents and a database.
Cisco which has offices in Israel, made two major Israeli acquisitions in 2021 which include Sedona Systems, a communication technology developer for $100 million and Espagon, an applications monitoring company for $500 million. Cisco also made Israeli headlines in October by announcing it was considering building a new chip development center in Beersheva.
Invest in Israel’s Tech Sector
In 2021, Israel saw a vigorous new chapter in its ongoing tech boom, and it doesn’t show signs of stopping in 2022. Now is an ideal time to invest in Israel’s tech sector, and public companies make great Israeli investments. In addition to individual stocks, ETFs, which provide a broader exposure to Israel’s economy.
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