Technology Giants on Giant Shopping Spree in Israel

YERUSHALAYIM -
Intel headquarters in Santa Clara, California.
Intel headquarters in Santa Clara, California.

The technology giants have been raiding Israel’s high-tech industry at an unprecedented rate over the past two years, reports CNNMoney.

Google, Apple, Intel, IBM and Cisco and others have spent nearly $4 billion for acquisitions of registered Israeli tech firms since 2012. But since this figure only refers to deals where a valuation is made public — and most deals are kept private — the actual sum is likely to be much higher.

Zack Weisfeld, an executive at Microsoft in Israel, estimates that about $13 billion in Israeli tech acquisitions have been done since the start of 2012.

“Over the last 18 months, the number of acquisitions has been staggering,” he said.

In June, Google bought the popular mapping firm Waze in a deal for approximately $1 billion. Just two months later, IBM announced the acquisition of Trusteer, an Israel-based transaction fraud prevention company.

Local media reported this week that Apple was buying PrimeSense for $345 million. The start-up is known for its 3D sensors. PrimeSense declined to comment and Apple did not respond to a request for comment.

“The companies being founded in Israel are very relevant for what we are looking for in terms of networking, data centers, security and video,” said Tal Slobodkin, senior manager of corporate development at Cisco Systems in Israel.

Cisco has made 11 acquisitions and invested in 22 start-ups in the country since 1998.