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TechNation: Israeli Tech Exits Registered Sharp Decline in 2018, PwC Says

TheMarker
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A high-tech park in Ra'anana, November 14, 2017.
A high-tech park in Ra'anana, November 14, 2017.Credit: Tomer Appelbaum
TheMarker

Israeli tech exits registered sharp decline in 2018, PwC says

The value of high-tech exits – meaning companies that were merged, sold or taken public – plunged by a third this year from 2017 to just $4.9 billion, according to the PwC Israel 2018 Exits report issued on Sunday. The number of exits also declined to 61 from 70 as did the average deal size to $81 million from $106 million. Despite the seemingly bad news, PwC said it believed the decline wasn’t due to industry weakness but a growing trend among Israeli tech entrepreneurs to allow their companies to mature and grow rather than seek a quick exit as they traditionally have. “Large investment rounds, together with second developing secondary market, have led to higher valuations and expectations from shareholders,” said Yaron Weizenbluth, PwC Israel partner. “The result is little motivation to do a deal at a low price, longer time to exit and demand for managers that can navigate their companies for the long term.” (Irad Atzmon Schmayer)

Israel plans auction for 5G mobile networks in first half of 2019

The Communications Ministry unveiled plans on Thursday to seek bids for fifth generation mobile networks in the first half of 2019. The Communications Ministry expects the tender in April or May, with the hope frequencies can be allocated by the end of 2019 and 5G can be launched between 2020 and 2023, director general Netanel Cohen said. “If you want to be a strong economy in social technologies, everything will be by the internet and everything depends on 5G,” Cohen told Reuters following a news conference. Ten times faster than 4G, 5G is the key to developing “smart” cities and self-driving cars, Cohen said. He estimated a 5G network, which would be an additional layer on existing 4G networks, would cost around 2 billion shekels ($529 million). The cost, though, may be too steep for Israeli cellular operators, which are struggling to remain profitable in a country with 8.9 million people and nine mobile providers. (Reuters)

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