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The accounting and consulting firm PwC Israel published the exit report for 2021. The report includes an overview of the acquisition and issuance transactions of Israeli technology companies during 2021. According to the report, this year a record was reached in the volume of purchases and issues amounting to About $ 82.4 billion, an increase of about 520% compared to 2020, when there was a total amount of about $ 15.4 billion. Also, 171 transactions were recorded this year, compared to the previous year in which 60 transactions took place in total.
If follow-on transactions (2019-2021) are taken into account, the total exits (issues, mergers and acquisitions), which were neutralized from the report due to the fact that they were included in the company’s reports when the previous issue or sale was made, then total transactions in 2021 amounted to 99.2 $ 1 billion, compared to 2020, when the total number of follow-up transactions amounted to about $ 17.1 billion.
Yaron Weizenblit, Partner and head of the high-tech cluster at PwC Israel, notes: “Last year, these very days, we concluded on this report a wonderful decade for Israeli high-tech. The rapid adaptability and resilience of the local technology market gave their signals in the second half of the previous year. , A year in which the world is facing an economic and social struggle, which occurs, presumably, only once every few hundred years. The degree of success we experienced at the beginning of the third decade of this millennium and the numbers speak for themselves. Companies that have been realized or issued in the past, because then, the total total transactions are already kissing one hundred billion dollars. Just for the sake of comparison, compared to the previous year, this is an increase of more than five times the total value of the total transactions, and an increase of almost three times their number. ”
An upward trend was also observed in the average value per transaction – with a record number of $ 482 million on average per transaction, which is a growth of about 190% from the previous year in which the average value per transaction amounted to $ 257 million. Excluding issues, this is also a record year for the acquisition transactions, which totaled 99 transactions worth $ 11.5 billion (an increase of about 180% compared to 2020) and an average of $ 117 million per transaction. This is compared to 2020 in which there were 41 purchase transactions worth $ 6.1 billion and an average of $ 150 million per transaction. It can be seen that the volume of purchase transactions and their total amount has doubled in relation to the data presented in 2020.
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This year, the number of transactions that crossed the $ 1 billion mark among technology companies totaled no less than 21 times. All issues, of which 20 issues occurred in the United States. A record in terms of issues – 72 issues for 2021 with a total value of about $ 71 billion, compared to 2020 when only 19 issues were recorded with a total value of about $ 9.3 billion. Size of transaction The average IPO for 2021 is $ 985 million, compared to $ 489 million in 2020, due to IPOs (including spikes) in the US.
The most valuable offering is Iron Source, which is worth $ 11 billion. It was followed by the $ 9 billion Sentinel One company -Monday.com worth $ 6.8 billion. This year saw a significant increase in IPOs on the local stock exchange with 45 IPO deals by high-tech companies – chief among them IPOs worth $ 1 billion and Glassbox worth $ 350 million.
In 2021, there were 28 significant transactions (over $ 500 million) for a total of $ 69.7 billion, compared to 6 significant transactions for a total of $ 9.4 billion in 2020. A share of transactions of $ 10 million – $ 50 million continues to lead this year with 67 transactions Which constitute 39% of the total transactions, compared to 24 transactions last year.
The corporate computing and software sector continues to lead in total transactions of about $ 40.6 billion, and even grow significantly compared to 2020 where the total total stood at $ 7.4 billion. Another segment that is showing a significant increase is the Internet with a total of about $ 23.8 billion and continued growth, among other things, from the issuance of IronSource. In the life sciences industry, the total amount increases to $ 5 billion, compared to $ 2.7 billion in 2020, but there is still a significant decrease in the volume of transactions compared to other sectors – 6%, compared to 17% last year.
In 2021, there was a significant increase in the number of “blue-and-white” transactions with 32 acquisition transactions by Israelis, led by Avanan (by Check Point) and Vdoo (by Jfrog), compared to 11 acquisition transactions in 2020 and 10 transactions. Acquisition in 2019. The United States remains the most significant in terms of buyers. “Israeli high-tech produces managements that know how to build independent and sustainable companies for years to come.”
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