Next Vision Stabilized Systems (NXSN.TA), a leading Israeli tech firm, saw a prominent English hedge fund acquire a 2.5% stake in the company for NIS 192 million. Israeli insurance giant Clal has also joined the deal, snapping up additional shares valued at NIS 40 million, boosting its existing 6.4% holding, currently worth around NIS 493 million.

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).