Summary：

In December 2024, the Israeli tech industry raised approximately USD $249 million in funding. Additionally, the total amount of publicly disclosed acquisitions was approximately USD $520 million. The acquired Israeli companies include: Windward（Maritime AI analytics solutions）、Green Invoice（Online invoicing generation and management）、Hexagate（Web3 Security）、Perception Point（Cybersecurity Protection Solutions）、Syte（Visual AI product discovery and shopping platform）、Smartech（Smart manufacturing solutions）。

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

Israeli companies which received investment in December 2024

Israeli merger and acquisition deals in December 2024

1. Windward，Maritime AI analytics solutions

On December 24, 2024, Windward, an Israeli maritime analytics company, announced its acquisition by the American investment fund FTV Capital for approximately $270 million. This transaction represents a significant premium for shareholders, nearly doubling Windward's initial public offering valuation. Windward specializes in forecasting technology for maritime trade, providing a platform that delivers real-time insights and risk management intelligence for various stakeholders, notably in the insurance sector and shipping industries.

FTV Capital is a well-established investment firm known for its focus on growth-stage technology companies. It aims to leverage Windward's innovative capabilities to enhance its portfolio and expand its impact within the maritime analytics field.

The acquisition underscores the growing importance of data-driven insights in maritime operations, particularly through technologies such as Maritime Analytics and Forecasting Technology. By integrating Windward's advanced forecasting capabilities, FTV Capital is poised to strengthen its position in a market that increasingly values predictive analytics for risk management and operational efficiency. This move not only enhances Windward's growth potential but also aligns with broader trends toward digital transformation in the maritime sector.

Maritime Analytics refers to the use of data analysis and technology to gain insights into maritime activities, including shipping, trade, and risk management in the maritime industry. It involves collecting and processing data from various sources to provide real-time information for stakeholders such as shipping companies, insurance firms, and government bodies.

Forecasting Technology is the application of statistical and analytical techniques to predict future trends and outcomes based on historical data. In the context of maritime trade, it helps stakeholders anticipate shipping patterns, assess risks, and make informed decisions.

Similar Israeli companies include: Sea Analytics (Maritime data analytics solutions); GEOSTORM technology (Weather forecasting and disaster prevention).

2. Green Invoice，Online invoicing generation and management

On December 22, 2024, Italian software company TeamSystem announced its acquisition of the Israeli fintech firm Morning for approximately $150 million.

Morning is renowned for its Green Invoice platform, which offers a cloud-based solution for invoicing and business management tailored to small businesses. Founded in 2011, Morning has built a customer base of around 150,000 in Israel, focusing on providing intuitive tools to enhance business operations for freelancers and small enterprises.

TeamSystem, a notable player in the Italian market, specializes in delivering business management solutions for small and medium-sized enterprises, positioning itself as a leader in the sector. The acquisition of Morning not only expands TeamSystem's portfolio but also strengthens its presence in the Israeli fintech landscape, allowing it to tap into the growing demand for SaaS solutions in business management. This strategic move aligns with TeamSystem's goal to enhance its offerings by integrating innovative technologies that cater to local market needs while providing substantial financial returns to Morning's founders and investors. As both companies continue their operations, the integration of their resources is expected to foster innovation and improved service delivery in the fintech sector.

Similar Israeli companies include: Servara Solutions (Field service management solutions).

3. Hexagate，Web3 Security

On December 18, 2024, American blockchain analytics leader Chainalysis announced the acquisition of Israeli blockchain security startup Hexagate for an estimated $60 million.

Hexagate, founded in 2022, specializes in security solutions for Web 3.0 and blockchain technology, with a mission to detect vulnerabilities and prevent thefts in digital assets. Following the acquisition, Hexagate will continue its operations independently while being integrated into Chainalysis' broader security initiatives.

Chainalysis, which employs approximately 900 people globally, serves a diverse clientele, including financial institutions and law enforcement agencies, thereby enhancing its capabilities in the rapidly evolving blockchain landscape. This acquisition strengthens Chainalysis' position in the blockchain security sphere, particularly as demand for robust security measures increases amid rising threats in the Web 3.0 environment.

Web 3.0 is the next generation of the internet, characterized by decentralized networks, blockchain technology, and a focus on user control and privacy. It aims to create a more intelligent and connected web experience by utilizing technologies such as artificial intelligence, machine learning, and decentralized protocols to give users greater ownership of their data and digital interactions.

Blockchain Security refers to the measures, protocols, and practices put in place to protect blockchain networks from malicious attacks, fraud, and vulnerabilities. It encompasses a range of strategies including cryptographic techniques, decentralized consensus mechanisms, and security audits to ensure the integrity and confidentiality of transactions on blockchain platforms.

Similar Israeli companies include: Web3 (Digital marketing solutions); CyVers (Blockchain Security Solutions); Blockfence (Blockchain security).

4. Perception Point, Cybersecurity Protection Solutions

On December 12, 2024, Fortinet, an American cybersecurity leader with a market capitalization of $75 billion, announced its acquisition of the Israeli firm Perception Point for approximately $100 million.

Perception Point specializes in AI-powered technologies that safeguard critical collaboration tools such as Slack, Teams, and various cloud applications. Founded in 2015, the company has raised around $75 million and is recognized for its innovative approach to email and collaboration security.

Fortinet, known for its comprehensive cybersecurity solutions, aims to enhance its offerings through this acquisition, integrating Perception Point's capabilities into its Fortinet Security Fabric, a unified platform that streamlines various cybersecurity functions. This move aligns with Fortinet's strategy to secure the increasing adoption of cloud-first and hybrid work environments, addressing the evolving security needs of businesses. The integration of advanced AI systems from Perception Point will bolster Fortinet's defenses in the rapidly changing landscape of cybersecurity, responding to the growing demand for robust protection across digital workspaces.

Fortinet Security Fabric is a cybersecurity framework that enables organizations to integrate and manage various security solutions within a unified platform. It simplifies the deployment and operation of security technologies, providing comprehensive visibility and protection across the entire digital environment.

Similar Israeli companies include: Intelici (AI-powered cybersecurity solutions); EyeKnow AI (AI-based security monitoring solutions); Fortress (Cybersecurity Solutions); Appdome (Mobile app security solutions).

5. Syte, Visual AI product discovery and shopping platform

On December 4, 2024, Pereg Ventures, based in the United States, acquired a controlling stake in Syte, a company specializing in AI-powered product recommendations for the apparel eCommerce sector. The transaction amount has not been disclosed.

Syte has developed a proprietary recommendation engine that enhances the online shopping experience by providing tailored product suggestions, thus optimizing conversions and addressing common retail challenges such as out-of-stock situations.

Pereg Ventures is known for its focus on retail technology investments and has a successful track record of nurturing innovative startups in this domain.

This acquisition positions Syte for significant growth, leveraging Pereg's industry expertise to expand its influence within the eCommerce ecosystem. By integrating Syte's unique technology with Pereg's resources, the partnership aims to redefine how apparel brands engage with customers, ultimately driving enhanced revenue streams and streamlined shopping experiences through advanced AI solutions.

AI-Powered Product Recommendation Engine is a technology that utilizes artificial intelligence algorithms to analyze customer behavior and preferences, enabling eCommerce platforms to provide personalized product suggestions. This technology enhances user experience by increasing the relevance of recommendations, thereby improving conversion rates and sales for online retailers.

Similar Israeli companies include: Fast Simon (eCommerce site search and merchandising solutions); ShopperAI (Retail data solutions based on behavioral analysis); Behalf (Business payment solutions).

6. Smartech, Smart manufacturing solutions

On December 3, 2024, Hexion Inc., based in the United States, announced the acquisition of Smartech, a technology company specializing in AI-driven autonomous manufacturing solutions. The transaction amount has not been disclosed. This marks Hexion's first acquisition in a decade, signifying a pivotal move towards integrating advanced AI technologies into its manufacturing processes.

Smartech, established in 2005, focuses on enhancing manufacturing efficiencies through its innovative AI solutions. The company’s technologies, including the patented SmartMDI system, are designed to optimize production quality and reduce waste, making them valuable in various manufacturing sectors.

Hexion is a prominent player in the adhesives and performance materials industry, offering a wide range of products for different applications. This acquisition aligns with Hexion's long-term objectives of leveraging AI to enhance operational efficiency and sustainability. By incorporating Smartech’s advanced manufacturing capabilities, Hexion aims to improve production processes and respond effectively to the challenges faced by manufacturers today, reinforcing its commitment to innovation and sustainable growth in the sector.

SmartMDI is a patented system that employs dynamic chemistry control to facilitate precise resin application in engineered wood production. This technology optimizes surface coverage and reactivity, resulting in reduced raw material costs and lower VOC emissions, delivering significant environmental and economic benefits in the manufacturing process.

AI-Driven Autonomous Manufacturing Solutions refer to technologies that utilize artificial intelligence to automate and optimize manufacturing processes, enhancing efficiency, sustainability, and production quality. These solutions integrate advanced control systems and process optimization algorithms to enable manufacturers to minimize waste and improve operational performance.

Similar Israeli companies include: MDC Industries (Customized tubing and compound manufacturing); Plataine (AI optimization solutions for manufacturing).