JERUSALEM, Dec 15 (Reuters) – Appetite for Israeli technology innovation has remained undiminished this year, with ​a surge in acquisitions and IPOs led by ‌Alphabet’s $32 billion purchase of Israeli cybersecurity company Wiz, PwC Israel said ‌on Monday.

The consultancy said in a report that such deals jumped by 340% to nearly $59 billion, from $13.4 billion in 2024. Excluding the Wiz deal, the value ⁠of transactions doubled to $32 ‌billion.

There were seven IPOs with a combined valuation of $14.6 billion, up from the $781 million ‍total achieved with six listings in 2024, demonstrating strong investor demand despite Israel’s two-year war against Palestinian militant group ​Hamas.

PwC noted a decline in medium-sized deals between $100 ‌million and $500 million, but more small and larger deals.

There were six acquisitions above $1 billion this year, including fintech firms Next Insurance (bought for $2.6 billion) and Melio ($2.5 billion), with Nasdaq listings for Navan and eToro at valuations ⁠of $6.2 billion and $4.4 billion respectively.

Yaron ​Weizenbluth, a partner and head ​of audit in PwC Israel, said that while more tech entrepreneurs and managers have relocated ‍operations overseas, many ⁠companies still rely on the “unique talent in Israel”.

“The Israeli market has demonstrated an incredible ability to ⁠adapt and close gaps in the past; the potential for ‌value creation is immense,” he said.

https://finance.yahoo.com/news/israeli-tech-sector-annual-deals-120723411.html