In the environment where Israeli startup investment trends are down, there is still potential growth in the areas of cybersecurity, artificial intelligence and healthcare. Since 2023 to date, nearly half of the investment events involve cybersecurity startups.

List of Investment deals in November

list of M&A deals in November

List of M&A deals in November

1.     EverSQL, AI-driven database optimization solutions

On November 22, 2023, Finnish data infrastructure company Aiven, aquired EverSQL, an Israeli startup providing AI-driven database optimization solutions.

EverSQL, known for its AI product that enhances database performance, established three years prior and bootstrapped since its inception, aimed to transform database performance analysis using AI. The acquisition will integrate EverSQL’s optimization engine into Aiven's open-source platform, providing customers with automated insights for data architecture tuning. This move is expected to optimize data workflows and reduce operational costs.

2.     CartiHeal, innovative knee implants

On November 22, 2023, the Israeli startup CartiHeal, a developer of a knee implant that regenerates cartilage and bone, was acquired by the British medtech firm Smith+Nephew (LSE:SN, NYSE:SNN) in a deal valued at up to $330 million.

Smith+Nephew will pay an initial cash consideration of $180 million, with up to an additional $150 million contingent on financial performance. The transaction is expected to close in the first quarter of 2024.

The UK company Smith+Nephew, founded in 1856, is a medical technology business with a portfolio focusing on the repair, regeneration, and replacement of soft and hard tissue.

CartiHeal established in 2009 and headquartered in Israel and New Jersey, the company develops proprietary implants for treating cartilage and osteochondral defects in joints. It is known for Agili-C, a sports medicine technology for cartilage regeneration in the knee, indicated for a wide patient population, including those with mild to moderate osteoarthritis.

The acquisition aims to enhance Smith+Nephew's portfolio in orthopedic and sports medicine technologies, particularly in the area of cartilage regeneration.

3.     Validify, computer systems validation (CSV) automation

On November 22, 2023, Bioforum , the Clinical Research Organization (CRO) announced the acquisition of Validify, a leader in computer systems validation (CSV) automation. The financial terms of the acquisition have not been disclosed yet.

Bioforum is a global CRO specializing in data solutions for the pharmaceutical, biotech, and medical device industries. It offers services including data management, statistical analysis, and medical writing.

Validify provides a cloud-based platform that is agile and configurable, enabling clinical trial sponsors to digitize their validation process and implement a risk-based computer software assurance (CSA) approach.

Bioforum aims to integrate Validify's technology to enhance its clinical trial data management capabilities. This acquisition complements Bioforum's suite of cloud-based automation solutions, including BioGRID and JetConvert.
Validify's cloud-based platform for CSV automation, which helps reduce validation risks, improve regulatory compliance, accelerate project timelines, and enhance traceability and audit readiness.

4.     Firefly Neuroscience, a medical technology company

On November 16, 2023, WaveDancer, Inc. has entered into a definitive merger agreement with Firefly Neuroscience in an all-stock transaction. The merger is expected to close in Q1-2024.

WaveDancer, headquartered in Virginia, focuses on developing and maintaining IT systems and related services to modernize customer information systems.

Firefly is a privately held commercial-stage medical technology company dedicated to developing innovative neuroscience solutions to improve treatment outcomes for patients with mental illnesses and neurological disorders. It is renowned for its AI-driven Brain Network Analytics (BNA™) platform, which has received approval from the U.S. Food and Drug Administration (FDA).

BNA™ is a scalable, cloud-based platform built upon the company's extensive proprietary database of standardized, high-definition electroencephalogram recordings (including behavioral data).

The merged company will focus on continuing the development and commercialization of Firefly's AI-driven Brain Network Analytics (BNA™) platform, which aims to improve patient management and develop biomarkers and companion diagnostics for more effective treatments.

5.     Opster, solutions for optimizing search operations

On November 15, 2023, Elastic announced an agreement to acquire Opster. The completion of the acquisition is subject to customary closing conditions, and the transaction amount has not been disclosed.

Opster is an Israeli technology company specializing in optimizing search operations, offering solutions for automatic detection and resolution of cluster health issues, improving search performance, and reducing hardware costs.

Elastic (NASDAQ: ESTC) is a company known for its search and data analytics software. This acquisition by Elastic is part of the ongoing consolidation in the software industry and represents the growing market interest in advanced search optimization technologies. Elastic provides search-based solutions, including enterprise security, observability, and search services built on the Elasticsearch platform.

Elastic plans to integrate Opster's products to enhance its cloud offerings, making them more comprehensive and easier to manage.

6.     Anagog, Edge AI customer engagement

On November 13, 2023, according to announcements from both companies, Intent HQ announced its merger with Anagog, an Israeli company that specializes in Edge AI customer interaction platform and edge AI customer engagement.

Intent HQ is a privacy-first customer AI platform. The merger aims to enhance the personal relevance of generative artificial intelligence. It represents an important step in combining the capabilities of Intent HQ with Anagog’s edge AI technology, marking a significant development in the field of artificial intelligence, particularly in the area of modeling personal behavior on mobile devices.

The collaboration between Intent HQ and Anagog introduces the fusion of causal and generative AI, along with edge digital and ground truth data. Combining Intent HQ’s behavioral AI technology with Anagog’s edge AI technology can deliver more precise and timely customer engagement while protecting privacy.

Edge AI technology enables data processing and analysis to be performed where the data is generated (i.e., the "edge") rather than in remote data centers or clouds. This approach reduces latency, increases processing speed, and reduces reliance on central processing and storage resources.

Privacy-First refers to ensuring that privacy protection principles and regulations are followed when collecting, processing and analyzing data.

7.     Talon Cyber Security, an enterprise secure browser provider

On November 6, 2023, according to PR Newswire, Palo Alto Networks (NASDAQ: PANW) announced the acquisition of Talon Cyber Security. The transaction value is approximately US$625 million.

Talon Cyber Security specializes in enterprise browser technology that allows enterprises to run applications and services on a single platform, with the ability to secure all work activities through an enterprise browser without compromising personal use of the device or compromising user privacy. TalonWork Browser simplifies endpoint security by serving as a secure access point to enterprise applications and data on any device (managed or unmanaged) and on any operating system. With Talon, security teams can benefit from deep visibility into browser and application activity as well as native security features such as authentication, data loss prevention, and zero trust controls.

Palo Alto Networks, a global leader in cybersecurity, has acquired an Israeli startup for the second time in a week (on October 31, Palo Alto Networks announced the acquisition of Dig Security, a data security posture management technology company).