Ernst & Young (E&Y), one of the “Big Four” global auditors, forecasts
Israel will have 24 mergers and acquisitions in 2010, worth about
$1.75 billion, higher than the 17 deals made in 2009 for $1.5 billion.
During September and October alone, 13 Israeli companies were
bought in multi-million dollar deals, including seven in October, and six
in September.
In September, Google bought its second Israeli startup, Quiksee, also
known as MentorWave Technologies, which allows users to create
location-based interactive media content and is seen as the missing
link in Google’s Street View service, for $10 million. Google had earlier
bought LabPixies in April for about $25 million.
In early October, The McGraw-Hill Companies, Inc., one of the largest
publishers of educational books in the world, bought educational
software startup Tegrity, the fourth exit for private equity firm Infinity
Group in 2010. Tegrity, which helps educational institutions record
lectures, and enables students to view them anytime and anywhere
over the Internet or on any audio or video-enabled device, was sold
after it had been under Infinity’s wings for 10 years.
E&Y said it expected many more Israeli start-ups to be acquired in the
near future as more credit was available in the market allowing large
hi-tech companies and private equity firms alike to invest in innovative
new technologies.

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