Assaf Rappaport and his dog. (Credit: Nathaniel Tobias)

The previous round of negotiations reportedly collapsed when Wiz turned down a $23 billion acquisition offer from Google. Assaf Rapaport, Wiz’s CEO, explained at a TechCrunch conference that the company had opted to pursue an IPO instead, believing in its potential to surpass a $100 billion valuation. However, industry insiders suggest that regulatory concerns may have played a significant role in Wiz’s hesitation.

At the time, the regulatory landscape was heavily influenced by the Biden administration and the leadership of Lina Khan at the U.S. Federal Trade Commission (FTC). The FTC had been closely scrutinizing big tech mergers, leading to prolonged approval processes and, in some cases, outright cancellations. The failed acquisition of Israeli automotive chipmaker Autotalks by Qualcomm and the delayed Run:ai acquisition exemplified the regulatory roadblocks companies were facing. Wiz may have feared that tying itself to Google could result in a long, uncertain wait for regulatory approval, potentially harming its brand and business momentum.

Fast forward eight months, and the landscape has shifted. With the new Trump administration in place, Google appears more optimistic about its chances of securing regulatory approval. Trump replaced Lina Khan with Andrew Ferguson, a known hawkish voice on antitrust issues, but one who may take a more business-friendly approach than his predecessor.

Beyond the financial magnitude of the deal, Google’s renewed pursuit of Wiz signals its strategic intent to strengthen its position in the cybersecurity sector. While Google dominates in search and cloud computing, it lags behind competitors like Microsoft in cybersecurity services. Acquiring Wiz could provide Google with a critical edge, enhancing its enterprise security offerings and bolstering its presence in a market projected to grow exponentially in the coming years.

For Wiz, a Google acquisition could provide vast resources to scale its operations globally and accelerate product innovation. However, there remains the question of whether Wiz will ultimately accept the offer or once again pursue an independent path toward an IPO. The decision will likely hinge on an assessment of market conditions, regulatory risk, and long-term growth potential.

Main image credit: Founders of Wiz from left to right: VP Product Yinon Costica, CEO Assaf Rappaport, CTO Ami Luttwak, and VP R&D Roy Reznik. (Avishag Shaar-Yashuv)

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This development materialised via sale that involved several key figures offloading portions of their stakes. An early investor in Next Vision Yosef Sandler parted with shares worth NIS 44.3 million, reducing his ownership to 8.6%. Chairman Chen Golan sold NIS 55 million worth, lowering his stake to 5.7%, while VP of Technology Boris Kipnis offloaded NIS 40 million in shares. Director Nachman Benshaya sold shares valued at NIS 39.3 million, and CEO Michael Grossman cashed out NIS 50 million worth of stock. Despite the sales, a senior company source emphasized that the move was not premeditated but rather a response to strong external interest.

“We didn’t plan this sale,” the source told reporters. “A foreign investor approached us with a serious offer, and given the growing attention we’ve seen from such players, we couldn’t say no. It escalated quickly, and we had to find willing sellers to meet the demand.” The source underscored Next Vision’s strategy of welcoming significant investors who can add value, noting, “When a foreign player wants in, it’s a positive signal for the market and our shareholders.”

Next Vision, based in Raanana, has been a standout performer since its 2021 IPO, boasting a staggering 1,770% surge in its stock price. The company, which specializes in stabilized day and night cameras for drones and other vehicles, now commands a market value of NIS 7.7 billion – putting it within striking distance of the Tel Aviv 35 index. With the next index update looming in April, analysts see a strong chance for inclusion if its momentum holds.

The company’s recent financials further fuel its success story. In 2024, Next Vision reported a 121% revenue leap to $115 million, exceeding its sales target, while net profit soared 2.4 times to $66 million – representing 57.7% of revenue. A $33.2 million dividend was also announced, reflecting confidence in its cash flow. The ongoing war in Europe has been a key driver, with nearly 60% of last year’s sales tied to the region. Adding to its momentum, Next Vision recently secured a $30 million order spanning three years, building on a $101 million order backlog reported earlier this month.

Looking ahead, the company has set an ambitious 2025 revenue goal of $160 million, a 39% increase over 2024.

The transaction comes amid broader market trends, with the shekel weakening against the dollar since January, making Israeli stocks potentially more attractive to foreign buyers. Next Vision’s ability to draw international capital underscores its appeal in a competitive global tech landscape. As one of the most successful IPOs from the 2021 wave, the company continues to ride high on the back of an increase in military spending due to dramatic changes in geopolitics in recent years.

Main photo: Co-Founder and CEO Chen Golan (Credit: Orel Cohen).

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Like Hapoalim, Leumi announced it would distribute 40% of its annual profit as dividends. The bank’s fourth-quarter net profit reached NIS 2.5 billion, reinforcing its strong financial standing.

Leumi’s impressive performance was fuelled by rising interest income and a sharp decline in provisions for credit losses. The bank’s net interest income climbed 3.2% year-over-year to NIS 16.5 billion, bolstered by high interest rates. At the same time, provisions for credit losses plummeted by 70% to NIS 713 million, following a spike in 2023 due to increased risk assessments mandated by the Bank of Israel amid the war.

Market analysts had anticipated strong results, but the bank exceeded expectations. IBI’s research director, Liran Lublin, had projected a fourth-quarter return on equity of 14.6%, but Leumi outperformed with a ROE of 16.2% in the quarter and nearly 17% for the full year. The unexpected boost stemmed from strong non-interest financing income and lower-than-expected tax expenses, as the bank met its annual war tax obligations sooner than expected.

However, not all financial indicators were positive. Leumi incurred a NIS 600 million impairment charge related to its holdings in the U.S.-based Valley Bank, though this was a reduction from the previous year’s provisions.

For the first time, Leumi outlined ambitious financial targets for the next two years, following a similar move by Hapoalim. The bank expects annual net profits to range between NIS 9 billion and NIS 11 billion in 2025 and 2026, with an ROE between 15% and 16%. While this marks a slight decline from 2024 levels, it remains significantly higher than the 13.7% recorded in 2023 before adjustments for credit losses.

Both banks project continued high profitability despite expectations of declining interest rates and inflation. Leumi anticipates interest rates to drop to a range of 3.7%–4.25% by the end of 2026, down from the current 4.5%. Inflation is expected to moderate to 2.5%–3%, compared to the current annual rate of 3.8%.

A notable development in Israel’s banking sector is the shift toward increased transparency in financial forecasting. Market sources suggest that Leumi’s decision to publish multi-year earnings projections stems from a growing influence of foreign investors. European investors reduced their holdings in Leumi at the onset of the war, and U.S. investors, accustomed to forward-looking guidance, have taken their place. Similar trends appear to be at play at Bank Hapoalim, which recently published an investor presentation in English on the stock exchange website.

Despite record profits, the Bank of Israel is closely monitoring the banking sector’s exposure to the real estate market. Leumi’s mortgage portfolio grew by 11% in 2024, reaching NIS 147 billion, compared to 6.4% growth at Hapoalim.

Loans with a loan-to-value (LTV) ratio above 60% accounted for 44% of Leumi’s mortgage issuances last year, totalling NIS 12.9 billion. This high-leverage lending is particularly relevant to first-time homebuyers, who are eligible for mortgages covering up to 75% of a property’s value.

Image credit: Bank Leumi, Tel-Aviv. (REUTERS Corinna Kern)

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The MRSAM systems, a customized version of Israel’s Barak 8 air defense system, offer protection against a range of aerial threats. Equipped with advanced phased-array radar, command-and-control systems, mobile launchers, and interceptors featuring cutting-edge radio frequency sensors, the system can track over 1,000 threats simultaneously within a range of 70 kilometers.

The deal aligns with Indian Prime Minister Narendra Modi’s “Made in India” policy, which emphasizes local production and job creation. Reports suggest the contract will generate around 350,000 workdays, reinforcing the country’s push for self-reliance in defense manufacturing. IAI’s subsidiary, Aerospace Services India (ASI), based in New Delhi, oversees the MRSAM program in India, conducting transactions in the local currency and ensuring seamless collaboration.

Meanwhile, Elbit America, a subsidiary of Israel’s Elbit Systems, has announced a $139 million contract to continue producing “Google-Binocular” (ENVG-B) night vision devices for the U.S. Army. The devices, known for their ability to operate effectively in low-light and no-light conditions, will be manufactured at Elbit’s facility in Roanoke, Virginia, with deliveries extending through December 2026.

Since 2020, Elbit America has delivered over 25,000 ENVG-B units, which enhance soldiers’ situational awareness in extreme weather and challenging visibility. Eric Fox, Vice President of Combat Systems at Elbit America, emphasized the value these devices bring to soldiers, allowing them to perform critical missions regardless of environmental conditions.

Another notable development comes from Plasan Sasa, an Israeli company near the Lebanese border, which is deepening its collaboration with South Korean defense giant Hanwha. The partnership focuses on developing protection systems for Hanwha’s K9 Thunder cannons and K10 vehicles, with Romania as a primary target market. Romania recently finalized a $1 billion deal with Hanwha for protection kits for 54 K9 cannons and 36 K10 vehicles, which are NATO-standard artillery systems known for their impressive range of 360 kilometers.

This partnership, initiated in 2022, initially involved protective solutions for Australian military equipment, including Huntsman AS9 cannons and Redback armoured personnel carriers. Despite damage to its factory during the Iron Sword War, Plasan Sasa has continued to innovate, launching the Top Attack Protection System (TAPS) last year. Designed to safeguard vehicles from aerial threats such as drones, TAPS is a lightweight addition to existing defences and has undergone successful testing with Western armies.

Image credit: Defense Update

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In the past six months, Elbit Systems has experienced a remarkable recovery, with its stock price climbing by nearly 70% since June, reaching an all-time high. This surge has brought the company’s market valuation to $13.3 billion, solidifying its position as the largest defence company in the capital market.

Among Israeli companies traded on Wall Street, Elbit now ranks fourth in size, following pharmaceutical giant Teva and cybersecurity firms Check Point and CyberArk. This ascent has allowed Elbit to surpass notable companies like Mobileye, Wix, and Nice in market value.

Despite the ceasefire, analysts like Ilya Feiner from Leader Capital Markets predict continued strong performance for Elbit. The global increase in defense budgets, spurred by geopolitical tensions and NATO’s push to raise budget targets, supports a robust business environment. Even with the ceasefire, procurement is expected to remain vigorous, bolstered by significant contracts, such as a billion-shekel agreement with Israel’s Ministry of Defense for a new manufacturing facility.

Elbit’s ambitious goals include reaching $7 billion in revenue by 2025, a target likely to be met earlier due to the company’s expanding order backlog and production capacity investments. However, current limitations in production capacity rather than demand constrain growth. The company has invested heavily in expanding its facilities to meet the rising demand.

The market has already priced in Elbit’s anticipated gains, and further stock increases will depend on enhanced profitability, new project wins, or advancements in critical technologies like air defence lasers. Oppenheimer’s analyst Omri Efroni remains optimistic, citing Elbit’s record order backlog of $22.1 billion and substantial revenue growth. Oppenheimer has raised the stock’s target price to $280, maintaining an “outperform” recommendation, underscoring Elbit’s exceptional growth and profitability within the defence sector.

Image credit: IronVision, Elbit Systems

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In August, Turkey announced its own multi-layered defence project, named “Steel Dome,” intended to provide comprehensive protection against aircraft and drones. “The goal is to establish a multi-layered defence system,” a Greek official shared. “We are actively negotiating with Israel to make this a reality.”

Israel’s Iron Dome, developed by Rafael Advanced Defence Systems, is one of the world’s leading short-range air defence solutions. It targets threats within a 40 km range, with an interception cost of approximately $30,000 per projectile. For medium-range threats, Israel employs the David’s Sling system, also by Rafael, with an interception cost near $700,000. The United States recently supplied the David’s Sling system to Finland in a €316 million deal.

Higher-altitude threats are managed by Israel’s Arrow systems, developed by Israel Aerospace Industries. Arrow 2 intercepts threats within the atmosphere, while Arrow 3, a more advanced system, intercepts targets outside the atmosphere. These systems are notably more expensive, with each interception costing between $1.5 million and $2 million. In a landmark deal, Germany purchased the Arrow 3 system from Israel for €3.5 billion, with deliveries expected to commence next year.

Image credit: Rafael website (www.rafael.co.il)

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The contract highlights Elbit’s $200 million deal to supply high-power laser systems, building on the company’s advanced laser technology to enhance Israel’s defence capabilities against aerial threats, including rockets, mortar shells, unmanned aerial vehicles (UAVs), and cruise missiles. Rafael, overseeing project leadership, will provide Magen Or’s launcher systems, marking a major step in integrating laser technology into Israel’s multi-layered air defence.

The Magen Or system, which operates at a potent 100-kilowatt power and has a range of approximately 10 kilometres, will serve as a cost-effective complement to Israel’s Iron Dome. While Iron Dome relies on costly interceptor missiles, Magen Or can neutralize threats with precision lasers at a fraction of the expense. However, Magen Or’s effectiveness is limited under certain weather conditions and can only target single threats at a time, though deploying multiple systems would address this limitation.

Major General Zamir emphasized that Magen Or represents “the beginning of a new era on the battlefield – the laser era, “with the first ground-based laser systems slated for operational use within a year. Rafael CEO Yoav Turgeman echoed the sentiment, noting the achievement as a culmination of years of research and experimentation. “Magen Or is the first of its kind to reach such advanced maturity and will soon be operational, representing a leap in defence capabilities,” Turgeman stated.

Elbit Systems President and CEO, Bezalel Machlis, hailed the collaboration’s breakthroughs, affirming that Elbit’s contributions to the project underscore Israel’s commitment to pioneering strategic defence technologies. “The capabilities integrated into Magen Or mark a fundamental shift in defence, leading the way into a new era,” he said.

The deployment of Magen Or as a new defence layer reinforces Israel’s resilience in the face of escalating threats, particularly given Iran’s stated hostility and determination to destroy Israel. By integrating this high-tech laser system, Israel not only fortifies its defences against missile attacks but also enhances its capacity to neutralize a broader range of aerial threats with increased efficiency and reduced costs. Magen Or emerges as a critical component within Israel’s multi-layered defence strategy, empowering the nation to respond swiftly and decisively – not only to threats from Iran itself but also from any proxies it may attempt to employ.

Image credit: Magen Or (Photo: Ministry of Defence)

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Two of the most prominent acquisitions took place within weeks of each other. In early September, Salesforce acquired Tel Aviv-based cloud backup company Own Backup for $2.1 billion. This was followed by the purchase of Zoomin, a company that uses AI to centralize and manage organizational information, for $450 million. Additionally, Salesforce acquired Tenix, a U.S. company with Israeli roots, founded by Israeli entrepreneur Itamar Aral, for an estimated tens of millions of dollars.

Zoomin CEO Gal Oron and the Salesforce logo. (Photo: Bloomberg, Richard Storm)

Salesforce’s interest in Israeli companies is not surprising. Through its venture capital arm, Salesforce Ventures, the company has long recognized Israel’s innovation potential, investing in 23 Israeli startups. These include notable unicorns like Wiz, Gong, and Melio. The recent acquisitions reflect Salesforce’s urgency to stay ahead in the AI race while addressing immediate gaps in its product offerings.

Salesforce’s decision to invest heavily in Israeli companies, especially during a time of heightened geopolitical tension, showcases the country’s resilience and tech ingenuity. Israel’s reputation as a global hub for cutting-edge AI and cloud technologies has made it an attractive destination for international tech giants. The country’s startup ecosystem consistently produces innovative solutions that address the evolving needs of the global market, particularly in AI, cybersecurity, and cloud computing.

Zoomin, for example, has developed AI-driven tools that help organizations manage vast amounts of unstructured data, making it easier for employees to retrieve information through simple commands. Its capabilities align perfectly with Salesforce’s vision to enhance its AI offerings, providing companies with more efficient tools for customer service and internal processes.

Own Backup, while not AI-focused, adds significant value to Salesforce’s cloud division, which is the fastest-growing segment of the company. The acquisition enhances Salesforce’s cloud services by offering advanced data backup and recovery solutions, a crucial component in today’s data-driven economy.

Salesforce’s recent moves highlight how AI is reshaping the software landscape. With companies like Zoomin and Tenix, Salesforce aims to integrate AI into its products, allowing for more automation in customer service, marketing, and sales. Zoomin’s system uses AI to scan organizational data and provide accurate, real-time responses to employee queries, similar to ChatGPT’s capabilities. Meanwhile, Tenix adds the ability to generate human-like voices for AI-powered chatbots, allowing them to act as virtual sales or service agents.

These acquisitions underscore Israel’s pivotal role in shaping the future of AI. Israeli tech companies are not only offering innovative solutions but also driving global trends in automation and AI integration, making them indispensable partners for global enterprises like Salesforce.

The success of Israeli companies in attracting high-profile acquisitions is a testament to the country’s thriving tech ecosystem. For instance, Zoomin’s rapid rise from a small startup founded in 2007 to a company securing deals with giants like Cisco, Dell, and Mastercard highlights the immense potential of Israel’s tech talent. Investors have reaped substantial rewards, with Bessemer Venture Partners, one of Zoomin’s early backers, seeing returns of six times its original investment.

As the demand for AI and cloud solutions grows, Israel’s tech industry is poised to remain a key player in global innovation. Companies that offer advanced solutions in data management, AI automation, and cloud services are likely to continue attracting interest from multinational corporations seeking to stay competitive in the digital age.

Image credit: Salesforce CEO Marc Benioff at a past Dreamforce conference. Photo: Jessica Christian/San Francisco Chronicle/AP

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The tech giant is aiming to enhance its cash flow to support ongoing factory construction and advance its production capabilities to compete globally. In tandem with these strategic shifts, Intel is set to launch its latest processor, the Lunar Lake, designed with an AI engine, which will be available for pre-order starting today and officially released on September 24.

Lunar Lake, Intel’s most advanced chip for Windows-based personal computers, was developed under the leadership of an Israeli team and manufactured at TSMC facilities in Taiwan, a competitor of Intel. Notable PC manufacturers, including Samsung, Lenovo, Asus, Acer, LG, and MSI, will offer Lunar Lake-equipped computers with a complimentary upgrade to Copilot Plus, a suite of Microsoft’s AI applications, beginning in November.

Zohar Tsab, Vice President of Intel’s Personal Computing Group, emphasized the strategic foresight of investing in AI technology three years ago, stating, “We recognized the enormous potential of artificial intelligence in personal computers.” He highlighted the collaborative efforts of hundreds of Israeli engineers who contributed to the Lunar Lake project, overseeing everything from product definition to architectural design.

The launch comes at a critical time as the fourth quarter is traditionally Intel’s strongest period due to back-to-school and holiday shopping. Intel seeks to reaffirm its leading position in the core processor market amid rising competition from AMD and Qualcomm, both of whom are making significant inroads into personal computing. While recent reviews of competing chips have been mixed, Intel’s new offering is seen as a vital step in maintaining its market position.

In addition to the Lunar Lake launch, Intel is reportedly considering the sale of Altra, a programmable chip company acquired nine years ago for $16.7 billion. Following a strategic review, Intel aims to spin off Altra, which has not fully integrated into its core operations. The company plans to either take Altra public or sell it outright to generate cash for its production upgrades.

Furthermore, Intel is expected to make adjustments to its factory construction plans, which involve significant investment. The company has delayed the construction of a second clean room at its Kiryat Gat facility in Israel and may also postpone or cancel plans for a new factory in Magdeburg, Germany.

Image credit: Intel office in Haifa, Eran Yoffi Cohen

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Cyberint, founded in 2010, has been at the forefront of identifying and mitigating external threats. These threats often come in the form of cyber gangs that seek to gather sensitive information about companies, with the aim of using this data for blackmail or unauthorized disclosure. Cyberint’s tools are designed to track and neutralize malicious activities, such as the creation of fraudulent websites that impersonate legitimate companies, the exploitation of social media accounts, and the exposure of sensitive data.

This acquisition is notable not only for its timing but also for the solid return on investment it represents. Cyberint had raised about $65 million in funding from various investors, including the Viola Fund, private investors like Dov Beharev, former CEO of Amdocs, and Mario Segal. Despite the departure of its original founders – Raz Alon, Shay Friel, and Iti Yanovsky—Cyberint has continued to thrive under the leadership of Yohai Korem, a former vice president at the cyber company Cye.

The deal, which was executed entirely in cash, will enhance Check Point’s ability to offer comprehensive cybersecurity solutions. By incorporating Cyberint’s capabilities, Check Point aims to provide a more robust defense against cyber threats, particularly those involving external risk factors. This acquisition aligns with a broader trend in the cybersecurity industry, where major players are either developing in-house solutions or acquiring companies with specialized expertise.

Cyberint’s transition from a service provider to a software-as-a-service (SaaS) company has been a key factor in its success. This strategic shift, led by CEO Yohai Korem and supported by prominent board members like Eyal Sheeran and Harel Beit-On of the Viola Growth Foundation, has positioned Cyberint as a valuable asset in the cybersecurity market.

Image credit: freepik.com

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