138 exits totaling more than $ 20 billion were signed in 2019, up more than 70% - according to an IVC report • "High Year for High-Tech Industry"

• Peak Year // Illustration Illustration: GettyImages

NIS 385 billion in more than 1,200 transactions - these are the dramatic figures that summarize the exits activity in Israeli high-tech over the past decade.

The "Exits Report," published today by law firm Meitar and IVC, shows that in 2019 alone, 138 exits totaled approximately $ 21.7 billion - a significant leap of more than 70% compared to 2018, with total exits volume $ 12.6 billion.

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In doing so, 2019 was declared the peak of the past decade in terms of the total amount of transactions - excluding the $ 15.3 billion Mobilai deal in 2017, as a transaction that raised the amount of transactions for this year exceptionally.

Last year also saw a record increase in private companies' exits amounting to more than $ 100 million - 26 deals, up from 14 in 2018, and 18 in 2017. 2019 also marks the best year for venture capital funds - $ 7.1 billion 2.7 billion in 2018.

David Costman and Yaron Galay of Outbrain, Adam Singolda and Eldad Yielding of Tabula // Photo: Noam Galay

The report's figures indicate a decline in private companies 'exits in amounts below $ 20 million: 70 deals in 2018 compared to 66 in 2019. This figure reflects the rise in private companies' value.

Similar to 2018, this year American companies also concentrated about 80% of all acquisitions in M&A transactions (mergers and acquisitions). The share of Israeli acquirers remained modest and stable, both in terms of value and number of transactions, and in 2019 accounted for 6% of transactions, one of which, as we recall, was the huge merger between Tabula of founder Adam Singolda and Outbrain. In 2019, four Israeli IPOs were completed by Israeli companies in the US capital markets, and it seems that despite the growing number of growth companies, the IPO method has not been a common route for liquidity in the past year.

"2019 was a record year for the high-tech industry," says Shira Azran, a partner at Meitar. "We have seen a 50% increase in the number of transactions in the last decade, and a jump of over 800% in the value of transactions, compared to 2019 to 2010." According to Ezran, "It is evident that the number of companies undergoing significant growth stages is much greater than those that can be realized. While expectations for US IPOs for 2020 remain single-digit, more companies will need to consider this avenue for liquidity and growth in the coming years."

Guy Holtzman, CEO of IVC, added: "Israeli high-tech enjoys a prosperity period. Israeli technology companies raise more capital directed towards growth and growth - and on the other hand, international corporations and private equity funds acquire more companies in accelerated growth and at a higher price tag than ever before. "