Led by IPOs, Israeli tech exits jump to record $15 bln in 2020 -PwC
22/12/2020 13:18
JERUSALEM, Dec 22 (Reuters) - Israeli high-tech exits jumped
55% to a record $15.4 billion in 2020, boosted by a rise in
companies holding public share offerings in the United States
and Tel Aviv despite the coronavirus pandemic, a report from
auditing and consulting firm PwC showed on Tuesday.
Technology is a key economic growth driver, comprising
nearly 10% of Israel's workforce.
Some 19 Israeli tech firms held initial public offerings
(IPOs) this year, led by Lemonade LMND.N , JFrog FROG.O and
Nano-X NNOX.O in the United States and Ecoppia Scientific
ECPA.TA and Aquarius Engines AQUA.TA in Tel Aviv.
IPOs accounted for $9.3 billion of the exits total this
year, up from $2.2 billion in 2019, PwC said, noting the average
value per IPO also rose to $489 million from $169 million.
There were also 60 acquisitions of Israeli tech firms, down
from 80 in 2019 but the average deal size rose to $257 million.
The computing and software sector led the exits, with total
value of deals of $7.4 billion, followed by the Internet and
life sciences sector.
"It is too early to talk about the end of the crisis and
many tech companies are actually experiencing challenges, but it
may be possible to start, with due caution, hoping COVID might
be soon behind us," said Yaron Weizenbluth, partner and head of
tech at PwC Israel.
"The impact of the pandemic is likely to linger for quite a
few years, and some are here to stay and be a new normal. But
whatever turns out, one thing is beyond debate, and it is that
technology and its different derivatives are vital and will only
be enhanced," he added.
(Reporting by Steven Scheer
Editing by Jeffrey Heller)
((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters
Messaging: steven.scheer.thomsonreuters.com@reuters.net;
Twitter: @StevenMScheer))