Home About Us BLOG Capital Raising Services Added Value Services Investment Focus Investor? Hebrew Contact Us
 
  Market Research     Israel: Investment News     Information
  Special Opportunities
 
       Previous News      News Index        Next News  


Israel Investment News - August, 2006

FDI REACHES $7.7 BILLION IN JAN-JULY 2006, SURPASSING THE TOTAL IN 2005 (08/2006)

Total Foreign Investment reach a record $15.4B

According to data published by the Bank of Israel, Foreign Investments rose significantly in January - July 2006 to reach $15.4 billion compared to $10.2 billion for the whole of 2005, which was a record year for foreign investments in Israel. FDI in the first 7 months of 2006 reached $7.7 billion as compared to the $5.6 billion registered for the entire year of 2005.


SIGNIFICANT FOREIGN INVESTMENTS RECORDED IN JULY (08/2006)

Almost $2B in FDI

"Announcements of acquisitions of Israeli companies by foreign companies also constitute a vote of confidence in the Israeli economy," stated Professor Stanley Fisher, Governor of the Bank of Israel. International companies that announced major acquisitions in July and August: • SanDisk acquired MSystems for $1.55B (see separate item) • Johnson&Johnson acquired Colbar for $159 million • Xerox bought XMPIE for $50 million • Shamrock purchased the majority shares of Teva Naot • CA bought XOSoft • Francisco Partners bought Ex-Libris for $62 million (see separate item) • HP acquired Mercury for $4.5B (company registered in the US and therefore the acquisition is not included in total FDI)


FITCH RAISES ISRAEL'S COUNTRY CEILING RATING TO “A+” (08/2006)

Israel received the highest possible rating

Fitch increased Israel’s country ceiling rating from “A” to “A+”. According to Fitch, this rating is a reflection of the private sector's ability to convert local currency into foreign currency and transfer to non-resident creditors and Israel’s economic integration into the global production, trade and financial networks.


ISRAELI SHEKEL STAYS STRONG (08/2006)

Shekel-dollar rate stable, while Shekel gains strength

Despite initial drops in its strength due to recent conflicts, the Israeli Shekel quickly rebounded to new strengths. With the onset of the ceasefire, the Shekel reached a 17 month high of 4.361 against the dollar.


SANDISK ACQUIRES MSYSTEMS, DISK-ON-KEY CREATOR, FOR $1.55B (08/2006)

Acquisition accelerates SanDisk's ability to innovate in the area of storage for portable computer

On July 30th, 2006 SanDisk, the world’s largest supplier of flash memory data storage products, acquired Israeli MSystems. This transaction brings together two pioneers in flash memory which will leverage SanDisk's manufacturing capabilities and market penetration. Chairman and CEO of SanDisk, Eli Harari said, "This strategic acquisition will give us the critical mass and complementary products, customers, channels, technology and manufacturing base to take our shared vision to the next level."


SANDISK ACQUIRES MSYSTEMS, DISK-ON-KEY CREATOR, FOR $1.55B (08/2006)

Acquisition accelerates SanDisk's ability to innovate in the area of storage for portable computer

On July 30th, 2006 SanDisk, the world’s largest supplier of flash memory data storage products, acquired Israeli MSystems. This transaction brings together two pioneers in flash memory which will leverage SanDisk's manufacturing capabilities and market penetration. Chairman and CEO of SanDisk, Eli Harari said, "This strategic acquisition will give us the critical mass and complementary products, customers, channels, technology and manufacturing base to take our shared vision to the next level."


SANDISK ACQUIRES MSYSTEMS, DISK-ON-KEY CREATOR, FOR $1.55B (08/2006)

Acquisition accelerates SanDisk's ability to innovate in the area of storage for portable computer

On July 30th, 2006 SanDisk, the world’s largest supplier of flash memory data storage products, acquired Israeli MSystems. This transaction brings together two pioneers in flash memory which will leverage SanDisk's manufacturing capabilities and market penetration. Chairman and CEO of SanDisk, Eli Harari said, "This strategic acquisition will give us the critical mass and complementary products, customers, channels, technology and manufacturing base to take our shared vision to the next level."


FRANCISCO PARTNERS ACQUIRES EX-LIBRIS SOFTWARE DEVELOPER FOR $62 MILLION (08/2006)

Private equity fund's first investment in Israel

With approximately $5 billion of capital under its management, Francisco Partners is one of the world's largest technology-focused private equity funds. Andrew Gray, a principal with Francisco Partners, said of the acquisition, “Ex Libris . . . represents an exciting opportunity for Francisco Partners. Financially strong and with consistently strong growth, Ex Libris is well positioned to make strategic acquisitions and to expand into new geographical markets.” Ex-Libris develops software for information retrieval in academic libraries and supplies software mainly for library management.


ORACLE OPENING R&D CENTER IN ISRAEL (08/2006)

R&D center to be powered by Israeli Demantra, a previous Oracle acquisition

Oracle, one of the world's largest suppliers of data management programs and with annual revenues in excess of $12 billion, is planning on opening an R&D center in Ramat Gan, Israel by the end of 2006. Demantra, a provider of demand driven planning solutions, will be the foundation for the R&D center. The Israeli R&D center will join Oracle's R&D centers in India and the U.S.A.


IBM TO ADD A NEW R&D CENTER IN ISRAEL (08/2006)

Lab to join IBM's 30-year old Haifa R&D center

The new lab will focus on information search, knowledge management and work sharing in real time and will unite three previously acquired Israeli companies: Ubique, iPhrase and Unicorn. The R&D center is the newest addition to IBM's long standing investment in Israel: the company's 2 R&D centers including the largest outside the U.S., in Haifa, and a large Global Technology Unit, responsible for introducing Israeli technology into the international market.


ISRAEL’S RATE OF CIVIL R&D SPENDING IN RELATION TO THE GDP IS THE HIGHEST IN THE WORLD (08/2006)

Civil R&D spending totaled $6.3 billion in 2005

The average rate for R&D spending for OECD countries is 3%, while Israel’s R&D is 4.7% of the GDP. According to data published on August 16, by Israel's Central Bureau of Statistics, 76 % of the civil R&D took place in the business sector. The Universities Planning and Budget Committee funded 52% of civil R&D expenditures, while 30% of expenditure on industrial technology was funded by grants from the Ministry of Industry, Trade and Labor and private companies.


BATTERY VENTURES AND VERTEX FORM A NEW INCUBATOR AT THE TECHNION IN NORTHERN ISRAEL (08/2006)

VCs to invest $150 - 200 million annually in the incubator for three years

On August 7 Scott Tobin, a general partner at Battery stated, "There are rare places in the world that create innovation. Based on the Technion's history, we believe this is an excellent platform for investment . . . The Technion is Israel's MIT." Tobin went on to explain that the commitment is a long term one and that the fund has confidence in Israel. Battery is one of the most esteemed American funds with more than $3 billion under its management and began operating a local office in Israel nearly six months ago.


SINGAPORE NATIONAL RESEARCH FOUNDATION VISITS ISRAEL TO STUDY INDUSTRY-ACADEMIC COOPERATION (08/2006)

The Singapore government agency has a five years budget of $7.2 billion for strategic R&D investments

The delegation's goal was to study Israel's academic infrastructure and its unique R&D collaboration with industry. The delegation chose to study Israel based on a Singaporean global study which recognized Israel as a leader in patents for commercial use derived from academic research. The NRF met with reps. of the Chief Scientist of the Ministry of Industry, trade and labor, visited the Weizmann Institute of Science and VC Funds.


MALAYSIAN COMPANY BUYS KODAK ISRAEL'S AUTOMATED CHIP PROCESSING PLANT (08/2006)

Acquisition marks ACM's first penetration into the Israeli market

This acquisition marks the opening of a local production center for ACM, which already has factories in Singapore and China.

Source: Israel Ministry of Industry, Trade and Labor - The Investment Promotion Center


       Previous News      News Index        Next News  


Home About Us BLOG Site Map Hebrew Links Contact Us
Capital Raising Services Added Value Services Investment Focus Investor?
All rights reserved to Western Headquarters Ltd. 2007   Yaron Bazaz
 
Glossary
Articles
Links
Downloads
  Spotlight