Barron’s Follows IOI: Checkpoint is an M&A Target
Written by: Aaron Katsman | March 18, 2008
Aaron Katsman
www.IsraelNewsletter.com
In yesterday’s Barron’s online, a story ran about potential M&A prospects and none other than the Israeli security company Checkpoint(CHKP), made the list as a potential target. To readers of our blog this comes as no surprise. Back in November we posted about the potential IBM buyout of Checkpoint. Back then Val Rahmani, IBM’s (IBM) general manager of infrastructure management for global technology services, saw security as a key to growth. Val said, “We’re looking at a lot of different companies right now, as we always do in a number of different spaces within security.”
With the major multi-nationals cutting back on R&D spending I would doubt that IBM, for example, would try and build a system in house, rather they can acquire a security play, and get a real company that has very real earnings.
Keep an eye on Checkpoint, as it may go down as Israel’s biggest acquisition ever. After all it’s not just IOI that thinks so, but also Barron’s.
Disclosure: Author’s fund has a position in CHKP. He holds no position in any other stock mentioned as of 3/18/08.
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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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