ISRAEL Law and Practice Contributed by: Barak Platt, Micki Shapira and Moshe Pasker, Arnon, Tadmor-Levy
1. Trends 1.1 M&A Market
M&A activity, particularly from the UAE follow - ing the Abraham Accords. These investors have shown particular interest in Israeli technology companies, especially those focused on water technology, agricultural technology and health - care. In addition, representation and warranty insur - ance (RWI) has become a common feature in Israeli M&A transactions. After a short pause following the 7 October 2023 attacks, foreign insurers are no longer hesitant to provide RWI in connection with transactions involving Israeli tar - gets, and more and more foreign insurers have A number of industries in Israel experienced significant M&A activity in 2024. Cybersecurity remains extremely robust in Israel, and a num - ber of private cyber companies were acquired by overseas market leaders. The most notable transaction in the cyber field that was announced at the beginning of March 2025 was Google’s acquisition of Wiz (a private company whose founders are all Israeli and whose technology is developed in Israel) for USD32 billion, marking Google’s largest ever acquisition. This transac - tion further demonstrates the significant interest that international companies have in Israeli cyber companies. AI companies in Israel have also raised signifi - cant amounts of capital and find themselves acquisition targets of large overseas acquisition companies. Additionally, the healthcare tech - nology sector has seen substantial activity, with medical device companies and digital health platforms attracting considerable interest from both strategic and financial buyers. started providing RWI. 1.3 Key Industries
The last 24 months have been a period of tre - mendous instability in Israel. The Israeli govern - ment’s push for judicial reform led to widespread massive demonstrations, beginning in January 2023. Those demonstrations ceased only after 7 October 2023, when Israel was attacked by Hamas, leading to the conflict in Gaza and Leba - non. Most analysts predicted that these events would have a chilling effect on M&A activity in Israel. However, both the number and average size of M&A transactions in Israel increased signifi - cantly in 2024. In addition, investments in Israeli start-up companies increased by 40% and the number of rounds of financing of Israeli start-ups grew by 15%. These statistics demonstrate the incredible resilience of the Israeli market. 1.2 Key Trends The use of earn-out provisions in M&A transac - tions involving an Israeli target has grown sub - stantially, appearing in approximately 65% of transactions in 2024 compared to 40% in 2023. This increase reflects both market uncertainty and buyers’ desire to mitigate risk by tying the purchase price to future performance. The duration of M&A transaction approvals is lengthening. This is due to more rigourous examinations by various regulators of the trans - action terms and the extension and deepening of due diligence reviews conducted by the buyer, putting more emphasis on the examination of IP rights, employee matters and supply chains (in light of the wartime conditions of the last year). Another notable trend has been the growing involvement of sovereign wealth funds in Israeli
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