Lipman, Comverse deals beg question: Who's next?

Investors are wondering what other major Israeli companies may be on the verge of either buying or being bought out.

By
April 11, 2006 08:05
1 minute read.
comverse logo 88

comverse logo 88. (photo credit: )

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

After Lipman Electronics Engineering and Comverse Technologies announced major deals Monday, investors are wondering what other major Israeli companies may be on the verge of either buying or being bought out. Last year, merger and acquisition activity in Israel quadrupled to $8 billion, from $2b. the previous year, according to a survey conducted by accounting firm KPMG. Some believe M&A activity will be even higher in 2006. One Israeli company that seems likely to be sold soon is Fundtech - a Nasdaq-traded electronic payments solution provider from Tel Aviv. Last week, reports in the Hebrew press said the company was in talks with Omaha, Nebraska-based Transaction Systems Architects at a company valuation of about $220 million. If that deal doesn't work out, the company is expected to buy or be bought out by another competitor to sustain its growth. Two other companies that may become acquisition targets are Mercury Interactive and Given Imaging, said an investment banker at a major financial institution. Mercury, a provider of business optimization solutions that was called "one of the top software firms in the world" by Forbes magazine in 2003, was delisted from the Nasdaq in January after it was rocked by an ugly accounting scandal. "Mercury's business fundamentals are fine, but the accounting problems would justify selling at this point," the source noted. Given Imaging, which makes a camera-in-a-pill, used for diagnosing certain medical conditions, is also a solid company, but its announcement last week that president and CEO Gavriel Meron was leaving his post raised new question marks, the banker said. "Does this mean a deal is on the way? Not necessarily, but it can sometimes be an indicator," he explained. On the buy side, the source noted that Check Point Software Technologies is hungry for an acquisition after its planned buy of Sourcefire collapsed. "Check Point indicated in its most recent financial report that another acquisition may be its best way to boost future growth, and it will want to move soon," the banker said. Another possibility, according to the source, is that geothermal power plant company Ormat Technologies may use some of the $117m. it raised last week in a share offering to buy some of the assets of Calpine, a California-based power plant that recently declared bankruptcy.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS