CTech’s Weekly Israeli Tech News Roundup

Israeli defense contractor Elbit to buy state-owned weapons manufacturer IMI, maker of the Uzi submachine gun. Elbit agreed to pay $523 million for IMI, after months of negotiations. Read more

WeWork’s offer to Israeli investors: buy bonds and get stock options. Institutional investors managed to get a peek at WeWork’s financials. Now they are preparing to assign the real estate company a credit rating, according to sources. Read more

Chinese telecommunications company Huawei sued for $23 million by Israeli distributor Electra for breach of contract. In February, Huawei notified Electra it is canceling their five-year exclusive distribution contract, due to Electra’s failure to reach its $60 million sales goal for 2017. Electra responded by declaring that Huawei failed to uphold its commitment to maintain a competitive price and assure a minimal gross profit for Electra. Read more

Pursuit of social media virality undermines journalism, says Randi Zuckerberg. A keynote speaker at Calcalist’s Mind the Tech conference, Ms. Zuckerberg discussed Israeli startups, the media, and gender in tech in an interview on the sidelines of the event. Watch the video

“Pompeo plays it straight.” Former CIA Director James Woolsey endorses the choice by President Trump of Mike Pompeo as the next secretary of state. Mr. Woolsey, who headed the American intelligence agency in the years 1993-1995, spoke on Tuesday at Calcalist’s Mind the Tech conference in New York, and said “I think he will be a good secretary of state.” Watch the video

Tokyo-headquartered multinational electronics company TDK is eyeing Israeli startups for acquisitions and strategic cooperations. The Japanese company has assigned its Israeli subsidiary, TDK-Lambda, to scout for investment and partnership opportunities in the country in the upcoming year. Earlier this month, TDK invested in Israel-based quick-charging battery startup StoreDot. Read more

The city of Haifa is launching a digital health complex set up by venture capitalist Erel Margalit. The 11,840-square-foot complex is set to house a startup accelerator, a venture capital fund, a student accelerator, workspaces for entrepreneurs, and a public event hall. Read more

Israeli-Canadian bitcoin outfit plans to invest $195 million to build new crypto mining centers in Québec. Canada-based Backbone Hosting Solutions, also known as Bitfarms, is in the process of merging with Tel Aviv-listed shelf company turned crypto mining company Blockchain Mining Ltd. The merger deal is expected to be completed by March 15. Read more

Behavioral biometrics company BioCatch raises $30 million in Series B. The company has raised $41 million to date. Earlier this month, BioCatch appointed Howard Edelstein to the role of CEO. Read more

Research and advisory firm Gartner closes Israeli innovation outpost. Gartner provides IT and marketing related insights to over 12,000 organizations in more than 100 countries, according to company statements. Gartner opened an Israeli outpost in 2011. In 2014 the company acquired Tel Aviv-based startup Senexx for an undisclosed sum and turned it into the company’s global innovation center. Read more