Despite the local unrest and economic uncertainty, the Israeli tech industry has shown resilience. In this article I will cover M&A trends since the start of 2024 compared to the same period in 2023. The trend is characterized by fewer but substantially larger deals compared to the previous year with continuing dominance of North American buyers, and a growing domestic M&A appetite.
Fewer deals, larger sizes
In 2024, from Jan. 1 to Aug. 30, there were 36 M&A deals involving tech companies headquartered in Israel, down from 44 during the same period in 2023. However, the median deal size in 2024 surged to $300 million, a dramatic increase from the $39 million median in 2023. This significant jump suggests that, despite the challenging environment, global investors continue to recognize and capitalize on the value of Israeli tech. The number of deals with announced deal sizes also increased slightly from 10 in 2023 to 11 in 2024, highlighting sustained interest and confidence in these transactions.
This report could have been even more drastic had the Google/Wiz $23 billion deal occurred in July 2024.
Total deal values surge
The total value of announced deals since the start of 2024 reached $3.9 billion, nearly quadrupling the $1 billion recorded in the same period during 2023. This surge in deal value underscores the increasing interest from global buyers in acquiring significant Israeli tech assets, particularly in high-growth sectors.
Continuing strong presence of North American buyers and growing domestic consolidation
- In 2024, North American companies remained key players in the Israeli tech M&A landscape, leading many of the largest acquisitions, although their numbers slightly decreased compared to 2023. Despite the reduction, North American firms, particularly from the U.S., continued to play a dominant role in acquiring high-value Israeli tech assets, especially in AI, cybersecurity and enterprise software.
- At the same time, there was notable growth in domestic consolidation with an increase in the number of Israeli companies themselves becoming acquirers. This suggests that while global interest remains strong, Israeli firms are increasingly consolidating within their own market to strengthen their competitive positions.
- European participation also remained steady, indicating sustained interest from Europe in leveraging Israeli technological innovations. These trends underline Israel’s enduring appeal as a hub of technological innovation, with continued engagement from global players, particularly in sectors critical to the future of business and healthcare.
Notable Deals in 2024 and 2023
The Israeli tech M&A landscape in 2024 and 2023 saw several significant acquisitions that underscore the global interest in Israeli innovation.
2024 Highlights:
2023 Highlights:
Itay Sagie is a strategic adviser to tech companies and investors, specializing in strategy, growth and M&A, a guest contributor to Crunchbase News, and a seasoned lecturer. You can connect with him on LinkedIn for further insights and discussions.
Illustration: Dom Guzman
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