Just like the 2001 crash of NASDAQ, the current global economic meltdown underlines the survival of the fittest, highlighting the competitive edge of Israel’s high tech industries:
1. The Gaza War has a mild impact on the Tel Aviv Stock Exchange: a 1.4% decline compared with a 4.4% decline upon the March 31, 2002 war on Palestinian terrorism in Judea & Samaria, a 6.4% decline following the September 25-29, 1996 Palestinian terrorism (Western Wall Tunnel), a 7% decline caused by the 2006 Lebanon War, an 11.4% decline caused by 9/11 and 13.6% decline triggered by Saddam’s invasion of Kuwait (Globes, Dec. 29, 2008).
2. 8 Israeli companies acquired in 6 week. Johnson & Johnson has acquired Israel’s Omrix for $438MN in cash (Globes, Nov. 25). The $11BN US medical device giant, St. Jude Medical, has acquired Israel’s MediGuide for $300MN in cash (Globes, Dec. 23). The US Harmonic acquired Israel’s Scopus for $86MN in cash (Globes, Dec. 24). The $5BN assets management Francisco Partners and Sequoia Capital VC Fund acquired Israel’s Dmatek for $77.6MN in cash (Globes, Dec. 30, 2008). CA acquired Israel’s Eurekify for $35MN, its 8th Israeli acquisition: Memco – $512MN, XoSoft – $100MN, Business Layers – $42.5MN, Abirnet – $30MN, Eurekify – $35MN, Security7 – $20MN, Iris Software and IDFocus (Globes, Nov. 14). France‘s Thales acquired Israel‘s CMT for $31MN – 50.1% initially and then the entire company (Globes, Dec. 19). Marvell acquired Israel’s Iamba for $10MN. This is Marvell’s 4th acquisition of Israeli companies (Galileo in 2001 – $2.1BN, RedLan and DSPC (Globes, Nov. 27). Canada‘s Vesta has acquired Israel’s 3G Solar for $10MN in stock (Globes, Nov. 13).
3. Sequoia Capital established its 4th Israel-dedicated fund, totaling $200MN, in order to benefit from opportunities, arising from the current global meltdown (lower valuations) and to leverage Israel’s cutting edge technologies and advanced manpower.
4. Israel’s TEVA, the largest generic pharmaceuticals company in the world has acquired Barr Pharmaceuticals, the fourth largest in the world, for $9BN (Globes, Dec. 24).
5. Harbourvest Partners – joined by Benchmark Capital and Cisco – led a $22MN 5th round of private placement in Israel’s Finjan (Globes, Nov. 20). Vision Opportunity Master Fund led a $19MN 3rd round by Israel’s iSkoot (Globes, Nov. 10). The US-based Yorksville Advisors has extended a $15MN standby equity distribution agreement to Israel’s BrainsWay (Globes, Dec. 22). The US-based Lightspeed Venture Partners has led a $10MN 5th round of private placement by Israel’s Provigent (Globes, Dec. 23). The US-based Argonaut Private Equity and Stata Ventures co-led an $8MN 1st round by Israel’s ZikBit (Globes, Dec. 15). Blumberg Capital co-led a $5MN 1st round of private placement by Israel’s Nolio (Globes, Dec. 17). Morgan Stanley and Harbourvest Partners co-led a $4.5MN round by Israel’s Axerra (Globes, Dec. 26). Silicon Valley Bank and Kreos Capital extended a $4MN venture lending to Israel’s Oree (Globes, Nov. 21). The US-based BioVentures Investors and Healthcare Partners 20/20 invested $3.3MN in a 2nd round by Israel’s Rcadia Medical (Globes, Dec. 16).