Israeli M&A on Fire: Top 2 M&A Candidates for ‘08
Written by: Aaron Katsman | December 12, 2007
Aaron Katsman
www.IsraelNewsletter.com
With news of the Israeli company NetManage(NETM) being acquiredby Rocket Software for approximately $69 million, a 95% premium over yesterday’s closing price, coming on the heals of HP’s(HPQ) purchase of Nur Microprinters(NURMF.pk) earlier in the week, Israeli M&A is back with a vengeance. In what was a very slow year up ’til now, has suddenly turned hotter than the New England Patriots.
With the focus squarely back on foreign firms picking up Israeli publicly traded firms for cheap, here at IOI, we would like to present our top 2 M&A picks for ‘08.
Ormat Technologies(ORA) engage in the geothermal and recovered energy power business. They have produced impressive growth with a 13% rise in net income last quarter. With rumours swirling that both Apax Private Equity and Goldman Sachs(GS), are looking at buying a 10% share of the company, and local business Chaim Katzman(no relation) continually raising his stake in the company, Ormat is a prime takeover target.
Amdocs (DOX), the telecom billings systems firm has been a poor performer for investors over the last 6 months , but with a sparkling balance and dominance in the billing field it could be a perfect fir for the likes of an IBM(IBM) or SAP(SAP), as they look to add another product to their offering. While I have mentioned these rumors before, with the stock 15% down, and ‘08 shaping up to be a great year for Amdocs, the time seems perfect for an offer.
Disclosure: Author’s fund owns stock in and is long ORA and DOX. He holds no position in any other stock mentioned, as of 12/12/07.
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
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