ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the February 2013 issue


Growth by Acquisition

IsraeIi companies have often been criticized for opting for early exits. Many would accept offers of under $50 million. While there is nothing wrong with an early exit it nevertheless hinders the development of large industrial concerns.

Therefore, a headline in Globes that NICE is in negotiations to buy Verint at $1.5b value, if consummated it would represent the single largest foreign purchase by an Israeli company.

If the purchase is completed the two companies together would dominate the US market for intelligence collation and analysis systems, including voice, video and text surveillance.

US antitrust regulators will likely have to approve the merger.

In September 2005 we chose NICE as an interesting investment vehicle. We wrote then "NICE-Systems Ltd. (Nasdaq: NICE; TASE:NICE) is a vehicle that enables the investor to participate in the burgeoning security industry".

We would like to see the NICE transaction consummated. It would serve as an example that growth can be achieved not only by internal growth but also by external acquisitions.

As we went to press rumors were heard that Pfizer was negotiating to buy biotech Mellanox for $1.0b



Reprinted from the Israel High-Tech & Investment Report February 2013

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