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FDI, M&A’s WEIGHED DOWN BY CRISIS IN 2009, UPTURN EXPECTED IN 2010

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Friday, April 9th, 2010

As reported in Invest in Israel,  foreign direct investment in Israel reached $3.8 billion in 2009, compared with $10.8 billion in 2008 and $8.8 billion in 2007, as investors worldwide tightened their belts in the wake of the global financial crisis.

Proceeds from M&As involving Israeli companies that were either acquired or merged, totaled $2.54 billion, 7 percent below 2008 levels ($2.74 billion), and 33 percent lower than proceeds in 2007 ($3.79 billion).

63 Israeli companies were acquired or merged in 2009, a 28 percent drop from an average of 87 companies in the previous three years. The top ten deals in 2009 yielded 80 percent ($2.02 billion) of the total for the year as four deals exceeded the $200 million mark and five deals exceeded the $100 million mark. The average deal size in 2009 was $40 million, an increase of 21 percent from $33 million in 2008.

The most noteworthy M&A deals of 2009 were Siemens’ $418 million acquisition of Solel; Medtronic’s acquisition of Ventor, estimated at $325 million; and IBM’s $225 million acquisition of Guardium.