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August 28, 2014 / 2 Elul, 5774
At a Glance

Posts Tagged ‘Globes Business Daily’

Yoram Ettinger: Cisco and Facebook Expand Israel Operations

Sunday, June 24th, 2012

John Chambers, CEO of Cisco,  in Jerusalem for the recent President’s Conference told Israeli business daily Globes: “We’ll expand here soon…. There are a lot of opportunities here. It’s the second country, after the US, in terms of start-ups and entrepreneurship. There are companies here that do not grow enough, and what we do is to bring these companies into the Cisco family and grow their activity. I don’t think that there is a better time to invest here, in partnerships, venture capital, and help our partners expand.

In March, Cisco acquired NDS, a London-based company with its development center in Israel, for $5 billion.

“Having the NDS base in Israel, we can enter fields such as security…. Although NDS’ headquarters are in Britain, its heart and soul are in Israel,” Chambers continued. “This is a country whose leaders and entrepreneurs I believe in. I believe that it’s possible to find a successful formula for both sides…. Cisco and the Israeli government have set up a joint team to examine ways of expanding their collaboration” (Globes Business Daily, June 21, 2012).

Cisco Systems Israel is Cisco’s second-largest design center outside the United States with over 750 employees, including 500 research and development engineers. Among Cisco’s numerous Israeli acquisitions are:  ClassData, $50 million (May, 1998); InfoGear, $300 million (March, 2000); HyNEX, $127 million (June 2000); Actona, $100 million (June, 2004); P-Cube, $200 million (August, 2004); and as mentioned – NDS, $5 billion, March 2012.

For its part, Facebook acquired Israel’s Face.Com for between $50 million-$100 million, its second Israeli acquisition, following the March 2011 acquisition of Snaptu for $70 million.

Lars Christensen, founder and CEO of Denmark’s Saxo Bank – the second largest foreign exchange broker in the world – which has recently entered the Israeli market: “We’ve identified a long-term potential in the Israeli market, especially due to Israel’s competitive edge in the area of technology.” In July, 2011 Saxo Bank acquired 25% of Israel’s Leverate and 100% of the activities of Israel’s Lembex Trading and Investment.

Originally published at http://www.theettingerreport.com/Home.aspx

Yoram Ettinger: For Long-Term Confidence in Israel’s Economy

Sunday, March 25th, 2012

Israel’s economic growth during the last five years (21%) is higher than all OECD countries, besides Turkey. Israel’s economy grew 270% over the last 20 years, while Israel’s population grew 145%. Israel’s unemployment is its lowest ever – 5.4%. The strength of Israel’s exports is derived from its multitude of companies, diversified technologies and products, reaching diversified markets, cutting edge technologies, focusing on essential products (medical, telecommunications, Internet, water technologies, energy alternatives, homeland security, defense), preferring high tech over raw material, expanding joint ventures with global giants, bolstering research & development (world leader in percentage of GDP).

Israel is expected to become a net-exporter of natural gas by2018. Israel’s economy receives a tailwind from an annual Aliya (Jewish immigration), reduced emigration, accelerated return by expatriates, an expanding young population (especially due to rising fertility rate of the secular sector), a growing integration of the ultra-orthodox community in Israel’s workforce and military service and the potential for a dramatic wave of Aliya due to economic, political, security, and social circumstances in the former USSR, France, England, Argentina and the USA (Adam Reuter, Financial Immunities, March 14, 2012).

Intel’s exports from Israel – $2.2BN in 2011. Since 1999, Intel’s exports from Israel total $22.5BN (Globes Business Daily, March 19). Intel employs 7,800 persons in Israel – 10% of Intel’s global manpower. 700 were hired in 2011, projecting 600 more in 2012. Abbott Laboratories – which acquired Israel’s SrarLims in 2010 – concluded a 3-year cooperation agreement with Israel’s Weizmann Institute (Globes, February 7).

Credit Suisse reported a 5.35% holding in Israel’s $12BN CheckPoint – $643MN (Globes, February 10). Virginia-based Tamro Capital Partners and San Francisco-based Parnassus Investments announced a 5.9% and a5.7% holding in Israel’s Ceragon – $18MN and $17MN respectively (Globes, February 10). The NJ-based Avaya acquired Israel’s RadVision for $230MN (Globes, March 16). The $21BN Broadcom acquired Israel’s BroadLight for $200MN- Broadcom’s 10th acquisition of an Israeli company in 10 years (5th since 2009), leveraging the top quality Israeli human resource – innovations; which are transformed into cutting-edge technologies, manufacturing lines and exports. Broadcom has intensified its Israel operations during the last two years (Globes, March 21, 2012). Goldman Sachs acquired 10% of Israel’s Viola Group fro $200MN (Globes, February 22). The NYC-based W Capital Partners acquired, from Yozma VC Fund, 3% of Israel/US Conduit for $39MN (March 19).

San Francisco-based Koshla Ventures and Burrill & Co. and Menlo Park-based Triple Point led a $30MN round by Israel’s HCL-Virdia (Globes, March 8). France Télécom, the French Publicis Groupe and Iris Capital co-led a $15MN round of private placement by Israel’s MyThings, joined by Silicon Valley’s Accel Partners and Deutsche Telecom investment arm T-Venture (Globes, March 21). The Boston-based Spark Capital led a $15MN round by Israel’s eToro (Globes, March 14). A West Coast investment bank led a $13MN round by Israel’s Vascular Dynamics (Globes, March 8).

2011 mergers & acquisitions of 85 Israeli high tech companies (27% increase over 2010) – $5.1BN, the highest sum in 10 years, except the 2006 bubble ($11BN).

 

http://www.theettingerreport.com/

Printed from: http://www.jewishpress.com/indepth/analysis/yoram-ettinger-for-long-term-confidence-in-israels-economy/2012/03/25/

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