Friday, 1 July 2016

Ambassador Yoram Ettinger: Cisco highlights global confidence in Israel’s capabilities





1. During January-June, 2016, Israeli companies were acquired by global companies for $2.4BN, compared with $3.4BN during the whole of 2015. For example, the California-based $60BN Cisco, the largest networking company in the world, acquired Israel’s cyber technology Cloudlock for $293MN, Cisco’s 2nd Israeli acquisition in 2016 (Leaba Semiconductor - $375MN) and its 13th acquisition in Israel, since 1998, totaling $2.2BN. The Pennsylvania-based $14.5BN Dentply Sirona acquired Israel’s MIS for $375MN (Globes Business Daily, June 29, 2016). The San Francisco and London-based $10BN Francisco Partners acquired Israel’s SintecMedia for $400MN (The Marker, April 28). The $51BN FosunChina’s largest privately owned conglomerate, acquired Israel’s Ahava for $75MN (Globes, April 13). The $49BN California-based Oracle – which employs over 400 persons in Israel - acquired Israel’s Crosswise for $50MN (Globes, April 18).  Germany’s RNTS Mediaacquired Israel’s Inneractive for $72MN, including $26MN in milestones (Globes, March 4).

2.  According to Cisco’s Chairman, John Chambers: “Israel is the most innovative country, producing the best startups…. Cisco invested $150MN in 30 Israeli startups, $60MN in four Israeli venture capital funds and acquired 13 Israeli companies since I became Cisco’s CEO…. Cisco operates four research & development centers in Jerusalem, Haifa, Netanya and Caesarea, employing 1,490 persons (Yedioth Achronot, June 29).”

3. Bill Gates made his first investment in Israel, along with Boston Scientific, in the Xelerator medical equipment incubator.  Sonny invested $75MN in Israel’s Interlude, joining other prominent investors, such as Intel’s and Samsung’s, MGM Studios’ and Warner Music’s venture capital funds (Globes, June 21). 

4.  June, 2016 highlighted the appeal of Israel’s startups to foreign investors. For example, five Israeli startups raised $65MN in Independent Private Offerings (IPOs) on June 15 (Globes). Three additional Israeli startups raised $30MN on June 22 (Globes).  Two Israeli startups raised $21MN on June 16 (Globes).  

5.  The terms of Israel’s acquisition of the F-35 – which is the most expensive military transaction in Israel’s history - underline Israel’s unique  role as the most effective battle-tested laboratory of the US defense industries, and Israel’s contribution to the US national security and economy. For instance, Lockheed-Martin, which operates maintenance centers throughout the globe, allows Israel to maintain its own F-35s.  Moreover, Israel is allowed to install its own unique, Israeli-developed and manufactured systems, which will enhance the capabilities of the F-35 and make Israel’s F-35 distinct. Furthermore, the cooperation with Lockheed-Martin, in the production of the F-35, will provide Lockheed-Martin with Israel’s unique research & development and enhance the performance of the F-35 (as has been the case with the Lockheed-Martin’s F-16 and McDonnell Douglas’ F-15, while netting Israel’s defense industries some $4BN (Globes, June 23).