Israel has been, and continues to be, a highly desired market for foreigners to invest in. 2017 saw total Israeli exit transactions of approximately $23 billion, including Mobileye for $15.3bn. Though this is down in terms of volume, it is up in terms of value. This is perhaps an indicator that the Israeli market is maturing and that Israeli entrepreneurs are now more able and willing to grow their companies to the point of significant market share, or past an IPO, prior to exit, as opposed to historical trends of those entrepreneurs looking for a quick exit.
Even with 2017 being a bumper year for M&A transactions in Israel, 2018 has already started to seem like it could surpass it. The first quarter finished on a high note with California’s KLA-Tencor announcing its purchase of Orbotech for $3.4bn. The Orbotech purchase is the fifth largest purchase of an Israeli company ever and is a continuation of the bullish outlook investors have of the Israeli market in general and of Israeli hi-tech ventures in particular. Even company financing in 2018 is looking up as the first quarter has seen investments of $1.52bn in 181 transactions.
