The Israeli high-tech sector experienced its best
year ever, in 2006. Merger and acquisition
activity was marked by small and big deals. The
Warren Buffett acquisition of Iscar, a $4.0
billion deal, San Disk's purchase of M-Systems
for $1.5 billion, and Hewlett-Packard's purchase
of Mercury Interactive set a new Êrecord for
foreign investments in Israel.
The Tel-Aviv Stock Exchange Index reached an
all-time record high. Foreign investors were
major participants. They not only enjoyed rising
prices but also a strong Israeli shekel, which
added to foreign investors' yields.
Following the successful firing of Arrow
anti-missile system, Israel sees the Arrow
program as a response to the realistic threat of
ballistic missiles in the region.
Intel confirmed that it will build a new $3.5
billion facility. It is expected to go on stream
in the second half of 2008. The Israeli
government has approved a $525 million grant
towards the project.
The Red Herring technology magazine has listed
six Israeli companies on its roster of 100 most
promising small caps, all listed on Nasdaq.
The first Israel-China investment fund was formed.
Johnson & Johnson has formed a joint research
program with Weitzmann Institute's Yeda.
The Corner Shot, a novel gun was unveiled. Corner
Shot is a gun with a camera and a special barrel
that swings on a hinge, allowing the shooter to
observe and engage the enemy from around a corner.
1.2 million households had an Internet hook up, a
growth of nearly 10 per cent from the preceding
year.
Google sets up its first research and development in the Middle East in Haifa.
Billionaire investor Warren Buffett acquires 80
per cent of Iscar Metalworking Companies for $4.0
billion. For Mr. Buffett it was the first major
acquisition of a company outside the United
States. The deal was initiated by an e-mail from
Eitan Wertheimer, the son of Iscar's founder Stef
Wertheimer, which simply said "We have a company
for sale".
The American Nasdaq stock market launched an
index of the Israeli companies listed on its
exchange.
July marked the beginning of the War in Lebanon.
Israel could not find an answer to the 1,000
katyushas that landed in its territory. The war
did not impact the Israeli high-tech sector as
business continued, as usual.
San Disk, the world's largest manufacturer of
memory cards, used in portable devices, acquired
Israel's M-Systems Flash Disk Pioneers for $1.55
billion.
Hewlett-Packard Êpurchases Israeli Mercury Interactive for $4.5 billion.
Foreign investment in Israeli start-ups ballooned to $2.2 billion.
Epix Pharmaceutical concluded a $1.2 billion deal with Glaxo Smith Kline.
Intel introduces its quad-core processor into the
market place. The revolutionary processor was
developed at Intel's Haifa R & D facility.
Israel's telecommunications exports reached $3.3 billion.
2006 was Israel's best year in terms of economic
achievements. Bank of Israel Governor Prof.
Stanley Fischer predicted that the growth for
2006 would reach 4.6% and he predicted an
additional 4% growth in 2007.
Barring any major political upheavals Israel is
poised to attract substantial additional foreign
investment and Êhopes to record another stellar
performance in 2007.
We wish all of our subscribers and friends best
wishes for the holiday season and New Year.