Any analysis of the Israeli cyber industry must address the question of acquisition of local companies by foreign companies. There have been more than a few such acquisitions. According to IVC, 18 deals for the sale of Israeli cyber companies took place in 2015 with aggregate proceeds of $1.2 billion, while not a single company held an IPO. In other words 4% of the industry's companies were sold, compared with a 2.5% average for Israeli high tech as a whole. For example, acquisitions in 2015 included Adallom, sold to Microsoft for $320 million, and Cyactive, sold to Paypal for $65 million.
One important point is that IVC includes in its analysis Israeli cyber companies acquired by other Israeli companies, rather than by foreign companies, e.g. Check Point's acquisitions of Lacoon for $100 million and Hyperwise for $20 million, and the sale of NICE Systems Ltd.'s (Nasdaq: NICE; TASE: NICE) cyber division to Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) for $150 million. As for Elbit Systems, IVC say it is Israel's largest cyber company, especially after its recent series of acquisitions.