Ambassador (ret.) Yoram Ettinger, “Second Thought: a US-Israel Initiative”
Straight from the Jerusalem Boardroom #179,Â May 10, 2013Â http://bit.ly/197mlxd
While struggling to turn around an expanding (5%) budget deficit,Â Israel sustains its unique roleÂ as a pipeline of commercial, defense and homeland security technologies to the US and the Free World.Â Israeli technologies, shared with the US industry, haveÂ enhanced the US employment, research & development and exports.
1.Â FacebookÂ about to acquire Israel’s Waze for $1BN.Â In January, Waze turned down Facebook’s offer of $500MN (Israel Hayom,Â May 10, 2013).Â Warren BuffettÂ completed acquisition of Israel’s Iscar — $2BN for the remaining 20% of Iscar.Â $4BN were paid for 80% (Globes, May 1). Â NYC’sÂ KKR Private EquityÂ acquired (from NYC’sÂ Warburg-Pincus Ventures) 75% of Israel’s Alliance Tires Group for $500MN (Globes, April 15).Â Israel’s Prolor was merged into Miami, FL’sÂ OpkoÂ for $480MN (Globes, April 25).Â San Jose, CA’sÂ Avago TechnologiesÂ acquired Israel’s Cyoptics for $400MN (Globes, April 12). Â China’s Fosun PharmaÂ acquired Israel’s Alma Lasers for $240MN (TechTime, April 29). Â J.P. Morgansold 21% of Israel’s CaesarStone (held by Israel’s Tene’ Investment Fund) for $170MN, onÂ NASDAQ(Globes, April 15).
2.Â Â Japan’s SonnyÂ extends its medical tech investments, investing $10MN in Israel’s Rainbow Medical investment fund, joining prior giant investors: Minnesota’sÂ Medtronic,Â Illinois’Â AbbottÂ andÂ Italy’s Sorin. Â Sonny is seeking Israeli acquisitions. Israel is a research & development hub forÂ GE Healthcare, Phillips, Medtronic, Johnson & Johnson, Boston Scientific and Switzerland’s Roche, which have acquired Israeli companies and have invested in scores of Israeli start-ups (Globes, May 9).Â GEinaugurated a software research & development center in Israel (May 1).
3.Â Â London’s Amadeus CapitalÂ led a $17MN round of private placement by Israel’s ClickTale (Globes, May 1).Â Israel’s Micronet Enertec raised $8MN onÂ NASDAQÂ (May 6). Waltham, MA’sÂ Battery VenturesÂ participated in a $6MN first round of private placement by Israel’s FTBpro (Globes, May 9).
4.Â The scope of Leviathan’s offshoreÂ proven natural gas reservesÂ is larger (19 Trillion Cubic Feet) than expected (17 TCF), according to Yedioth Achronot, May 2).
5.Â Â Israel’s unemployment decrease to 6.5%,Â during the first quarter in 2013, derives from increased integration — by Arabs and ultra-orthodox Jews — into the job market. The average unemployment rate is10.9% in the EU,Â 12.1% in the Euro BlocÂ andÂ 25% among the youth of the Euro Bloc.
6.Â “In January,Â Intel executive Greg SlaterÂ noted that many of his company’s major innovations over the past three decades started in Israel–including the latest ‘Ivy Bridge’ and ‘Sandy Bridge’ microprocessors, which accounted for 40% of Intel revenues in 2011….Â Microsof‘s founder, Bill Gates, said in 2006 that ‘the innovation going on in Israel is critical to the future of the technology business….’Â Scores of major U.S. manufacturers–from General Electric to General Motors, Microsoft, IBM, Google, Apple and others–have R&D centers and technology incubators in Israel….Â Israel [contributes]Â to the U.S. economyÂ thousands of skilled professionals, hundreds of joint patent applications, and hundreds of coauthored scientific and technical papers…. (Wall Street Journal, March 21, 2013).”
Shabbat Shalom and have a pleasant weekend,
Yoram Ettinger, Jerusalem, Israel,Â “Second Thought: US-Israel Initiative”Â