Aaron Katsman
www.IsraelNewsletter.com

While we still are awaiting a pick-up of M&A with publicly traded Israeli stocks, another hot Israeli start-up was acquired today. eBay’s(EBAY) subsidiary PayPal, the leader in on-line payments, has agreed to pay $169 million for FraudSciences, a company which develops fraud detection and protection products.

According to the press release, “Fraud Sciences’risk tools and analytics are expected to enhance eBay and PayPal’s proprietary fraud management systems and accelerate the development of next generation fraud detection tools.

The acquisition of Fraud Sciences fits into eBay’s recently announced plans to significantly improve trust and safety across its sites in 2008. “Integrating Fraud Sciences’risk tools with PayPal’s sophisticated fraud management system should allow us to be even more effective in protecting eBay and PayPal’s hundreds of millions of customers around the world,” said Scott Thompson, President of PayPal.

This acquisition highlights Israel’s technologicalsuperiority in the security and fraud sector, and that big global firms are turning to Israel to provide technological solutions, instead of developing the solutions internally. Israeli firms should continue to benefit from this move to R&D outsourcing, and as soon as we get some stability in the public markets, I would expect to see some very big deals concerning Israeli companies.

Disclosure: Author’s has no position in any stock mentioned as of 1/28/08.

Please see our Disclaimer HERE.

NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.

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.

Share with others:

Rumours are again circulating that Gilat Satellite Networks(GILT) is about to be acquired. We reported on this a few months ago and it appears that we actually got one right. Giddy up!Globes is reporting, “that after months of rumors and speculation, Gilatcould be sold in the near future. It is believed that a group headed by Mivtach Shamir Holdings Ltd., one of its current shareholders, is close to signing an agreement for the acquisition of Gilat, after raising its bid to $11.60 per share. The new offer reflects a valuation of $455 million for Gilat, or $483 million fully diluted, and a 14.2% premium over its current market price.

Gilat develops and produces very small aperture terminals for satellite-based communications networks. As my buddy Zack Miller wrote,”Competition in the satellite industry is heating up. Media companies, along with cable and wireless companies, have declared their desire to enter the satellite communications market. Instead of building an entire division dedicated to this, some of these companies are looking to either partner with, or acquire,an existing firm with good sales distribution. Gilat, with its focus on emerging markets and strong balance sheet, could be a good acquisition candidate.”

Disclosure: Author’s fund holds a position in GILT. He has no position in any other stock mentioned as of 1/23/08.

Please see our Disclaimer HERE.

NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.

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.

Share with others:

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.

Please see our Disclaimer HERE.

NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter.  Stay ahead of the game and make smart decisions in Israel stocks.  Go here to learn more.

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.

Share with others:

Aaron Katsman
www.IsraelNewsletter.com

As if investors needed a reminder that Israel is an attractive investment destination for multinationals, the news today the Hewlett-Packard(HPQ) is spending $117.5 million to buy Israeli NUR Macroprinters Ltd(NURMF.pk) is just that reminder. While M&A of publicly traded Israeli companies has sagged this year, this move by HP should remind investors of the tremendous bargains that these Israeli stocks which trade in the US, provide.

Leave it to HP to serve up that reminder. The company has been extremely active when it comes to investing in Israel. Today’s move expands HP’s portfolio of digital presses and wide-format printers and furthers its strategy to digitize analog prints.

A big congratulations for the team at Fortissimo Capital on an amazing investment. They invested $12 million in December ‘05 for 55% of NUR Macroprinters, as the company was on the verge of collapse. Today, that investment is worth more than $60 million!

Please see our Disclaimer HERE.NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.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.

Share with others: