The value of exits reached $15 billion. Many were IPOs, showing an increasing willingness to let companies mature
With almost $15 billion in exits, 2014 was by far Israeli hi-tech’s record-breaking year.
There were about 70 Israeli exits and IPOs in 2014, according to a report released last week by Israeli accounting and consulting firm PwC Israel (in Hebrew).
The value of these exits reached $15 billion, and the average deal was for $212 million. In 2014, there were 18 IPOs of Israeli companies at a total value of $9.8 billion, as opposed to $1.2 billion in 2013. Thirteen of these IPOs were in the U.S and five were in England.
In 2014, there were $5 billion in mergers and acquisitions as opposed to $6.5 billion in 2013. This indicates that more mature companies preferred to file an IPO than to be bought. Fifty-two companies were sold in 2014 as opposed to 39 in 2013, and the average size of a deal declined from $165 million to $97 million.
“In 2014, the stars were aligned for Israeli hi-tech,” PwC Israel partner Rubi Suliman said in a statement. “The maturity of many Israeli companies and investors, the availability of money for hi-tech from buyers and investors, and of course the strength of Israeli hi-tech, which adapted to the times.”
The semiconductor sector led the way in 2014 with deals valued at $5.7 billion. IT and software followed at $3.08 billion, life sciences at $2.2 billion, Internet at $1.8 billion, communications at $1.44 billion, and cleantech at $430 million.
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