This site uses cookies to ensure the best viewing experience for our readers.
Second Quarter Figures Show Steep Decline in Israeli M&A

Second Quarter Figures Show Steep Decline in Israeli M&A

Despite a number of large-size deals inked in 2018, second quarter figures for Israeli companies came off the mark

KPMG, a CTech Partner  :  2018-10-07T15:56:32..
In the second quarter of 2018, acquisitions of Israeli companies reached a total disclosed deal value of $478 million, a 80.8% decrease compared with the first quarter of 2018 and a 25.1% decrease compared with the same period in 2017, according to a new quarterly report on M&A activity in Israel, published Sunday by KPMG Israel. The decline is mainly due to the small number of deals finalized in the second quarter, the report found.

Global M&A activity in the second quarter of 2018 reached a total deal value of approximately $1,011.8 billion, a 33.4% increase compared to the same period in 2017 and a 9.1% increase compared to the first quarter of 2018. Worldwide, this year’s second quarter was the highest in the last three years in terms of M&A activity. The total deal value in the first half of 2018 amounted to $1,939 billion, an increase of 28%, compared to the same period in 2017. North America led the global M&A activity in total deal value, with deals adding up to $877 billion in the first half of the year.

Tel Aviv. Photo: 123RF Tel Aviv. Photo: 123RF Tel Aviv. Photo: 123RF
In Israel, average deal size decreased from approximately $120 million to $69 million between the first quarter of 2017 and the first quarter of 2018. Globally, average deal size for cross-border transactions decreased from approximately $249 million in the first quarter of 2018 to $80 million in the year’s second quarter.

The acquisition of Frutarom Industries, Ltd. by IFF for approximately $6.35 billion, announced in May, is not included in the data as it was not completed during the quarter.

During the second quarter of 2018, 170 Israeli-based tech companies raised a total of $1.61 billion in financing, a 5.6% increase compared to the previous quarter and a 27.2% increase compared to the second quarter of 2017.

In February 2018, Nasdaq-listed KLA-Tencor Corporation announced it agreed to buy Nasdaq-listed Orbotech Ltd. according to an equity value of approximately $3.4 billion and an enterprise value of $3.2 billion.

The largest transaction completed during this year’s second quarter was the acquisition of Landa Digital printing by Altana AG for approximately $300 million, which accounts for 62.8% of total cross-border deal value in the Israeli market.

This article was authored by Yoav Lavy, head of Transaction Services at KPMG Israel.

share on facebook share on twitter share on linkedin share on whatsapp share on mail

TAGS