Invest to Israel Report, June 2023

Summary

In June 2023, a total of 56 investment and acquisition projects occurred, with a total disclosed investment of approximately US$ 3.05 billion; among them, 49 are investment projects. Acquired projects include: ALGOLiON, Subzee, Kreos Capital, Sorrel Medical, Enso Security, Indeni, and Bablic.

Until June, the Israeli deals that China has invested in 2023 include: One Zero, Hexa, TinyTap, Optima Design Automation and NoTraffic.

In June 2023, Israel has a total of 49 investment projects.
Popular industries are concentrated in software, scientific engineering, healthcare, hardware, data analysis, artificial intelligence, information technology, manufacturing, biotechnology, and transportation.

Cross-border investments mainly come from the United States (20), Belgium (2), United Kingdom (2), Austria (1), Canada (1), China (1), France (1), Germany (1), Japan (1), Singapore (1), Sweden (1).

16 Israeli companies received investment from local.
It should be noted that some of the investment projects originated from multiple investors from different countries.

This article is based on publicly available market data at the time of publication.

List of Investment deals in June

list of M&A deals in June

1.    ALGOLiON - Battery software company

On June 30, 2023, General Motors Corporation (NYSE: GM) announced that it has acquired substantially all of the assets of Israeli battery software startup ALGOLiON Ltd. for an undisclosed amount.

The acquisition was led by the newly formed Technology Acceleration and Commercialization (TAC) organization, a group within GM dedicated to identifying emerging technologies through investment, acquisition or partnership to support GM's efforts in battery development.

ALGOLiON was founded in 2014 by Dr. Niles Fleischer and Dr. Alex Nimberger, with early support from the Israel Innovation Authority. The company develops software that uses data streams from electric vehicle battery management systems to help identify anomalies in battery performance to ensure proper vehicle health management and early detection of battery hazards, including thermal runaway propagation events. The software uses sophisticated algorithms to identify small changes that could affect the battery's health weeks earlier than other methods in use today, without the need for additional hardware or sensors, while the battery remains functioning normally.

2.    Subzee - Billing platform

On June 27, 2023, deal management company DealHub.io announced the acquisition of the billing platform Subzee, expanding its leading CPQ into a complete quote-to-revenue platform. The new product enables sales and finance teams to seamlessly manage the entire revenue lifecycle, solving All revenue streams including recurring, one-time, milestone, consumption and PLG (Product Led Growth).

Subzee integrates complete revenue lifecycle management, CPQ (full name Configure, Price, Quote), CLM (Contract Lifecycle Management), subscription, billing and revenue management, into a single platform , provides subscription-based pricing and billing solutions for businesses.

Eyal Elbahary, CEO of DealHub, said that PLG, self-service portals and usage-based pricing have become the main source of revenue for many companies, but existing billing solutions cannot effectively incorporate these new models into the source of revenue. Subzee was acquired because It "has the ability to provide CFOs with a single source across all revenue streams".

3.   Kreos Capital- Private Debt Manager

On June 8, 2023, financial technology provider BlackRock Inc. (NYSE: BLK ) announced a definitive agreement to fully acquire Kreos Capital. Kreos Capital is a growth debt firm providing financing solutions to high growth companies in Europe and Israel. The transaction is expected to close in the third quarter of 2023, subject to customary regulatory and closing conditions. The transaction amount has not been disclosed yet.

BlackRock said private debt investing has become an increasingly important part of investors' portfolios, with its recent Global Private Markets Survey finding that more than half of respondents plan to increase their private credit holdings by 2023. The acquisition of Kreos will complement BlackRock's global credit business and strengthen its position as the world's leading credit asset manager.

4.   Sorrel Medical - A provider of wearable drug delivery devices

On June 8, 2023, pharmaceutical technology company LTS LOHMANN Therapie-Systeme AG (LTS) announced that it has completed the acquisition of Sorrel, a provider of wearable drug delivery devices based in Netanya, Israel, from Eitan Medical Ltd. The acquisition amount has not been disclosed yet.

LTS is a leading pharmaceutical technology company that develops and manufactures innovative drug delivery systems such as transdermal patches (TTS) and oral films (OTF) for the pharmaceutical industry. The acquisition of Sorrel is a key step in LTS' strategy to expand its drug delivery platform portfolio.

Sorrel Medical, one of three privately held companies operating under the Eitan Group, is focused on the development and manufacture of prefilled wearable syringes for the easy and efficient self-administration of large volume and high viscosity drugs; leveraging drug delivery technology development, manufacturing and regulatory experience Core competencies and expertise in all aspects to provide powerful platform solutions for the healthcare market.

5.    Enso Security - An information security startup

On June 7, 2023, Enso Security announced that it had agreed to be acquired by Snyk, a leader in developer-first security. 

Founded in 2020, Tel Aviv-based Enso Security is an information security startup and pioneer of the industry's first Application Security Posture Management (ASPM) solution.

Acquisition of Enso Security is part of a series of innovations announced by Snyk in June 2023 that further enhance the Snyk developer security platform. Other release highlights include: Insight, provides exponentially more effective prioritization of security issues, allowing them to effectively focus on a specific organization's top risks; DeepCode AI, creates proven fixes when Snyk identifies issues in both human-written code and AI-generated code , which is critical to the AppSec team that is currently working to securely enable the explosion of new generative AI coding assistants.

6.    Indeni - A leader in security infrastructure automation

On June 2, 2023, BlueCat Networks, a leading provider of mission-critical network and cloud infrastructure software, announced the acquisition of Indeni, a crowdsourced automation platform for network and security infrastructure.

Indeni is a leader in security infrastructure automation, pioneering a new way of managing security infrastructure by providing automated practices. Indeni's platform helps Network Operations (NetOps) teams ensure the health of their network devices such as firewalls, load balancers and secure web proxies, analyze device configurations, metrics and logs, and alert administrators about existing and potential alerts on issues, using a global crowdsourced knowledge base to identify and recommend automated remediation steps. Many of the world's leading enterprises, including credit card issuers, global airlines, Big Four audit firms and health organizations, rely on Indeni's automation solutions to keep their networks up and running.

Toronto and New York-based BlueCat is an adaptive DNS company helping organizations provide reliable, secure web access from any location and any network environment. The acquisition will enhance BlueCat's DDI management platform, which provides core services that direct traffic and enable access and communication across networks.

7.  Bablic  - A cloud-based intelligent translation technology company

On June 1, 2023, Unbabel, a leading artificial intelligence language platform, announced the acquisition of Bablic, a cloud-based intelligent translation technology company. The acquisition amount has not been disclosed.

Founded in Tel Aviv, Israel in 2011, Bablic aims to be the most cost-effective translation management tool for businesses of all sizes. Its solutions enable users to maximize SEO benefits while easily controlling localized content without coding expertise. Bablic enables organic growth of international traffic, facilitating real-time, seamless web updates with customizable translation preferences.

Unbabel is an artificial intelligence-driven language operations (LangOps) platform that helps companies deliver multilingual customer experiences at scale. This acquisition expands Unbabel's translation management capabilities to drive SEO and lead generation for users through reliable web translations.