Israeli tech M&A buyers gain power, RE firms shake the money tree | TV10 Daily
Re: December 2, 2025 in Israel - and what it all means for investors at home and abroad.
The Tel Aviv Stock Exchange closed in the green. The flagship TA-35 Index (TASE:TA35) posted a 1.91% gain for the day. Investors piled into the liquidity of the big banks and dual-listed giants like Tower Semiconductor Ltd. (TASE:TSEM) +6.84%, leaving the mid-caps to play catch-up.
But the real signal is in the deal rooms.
Quick recap - PE One Invest just dropped ~₪ 150M for 35% of infrastructure specialist firm Ariel Gabay. And Israeli digital forensics company Cellebrite (NASDAQ: CLBT) has closed its $170M acquisition of Corellium, just in time to illustrate new data saying 35% of tech acquirers here are now Israeli companies.
This may all tally up to more than just recovery for the Israeli economy.
Let’s follow the money. 👇
Today’s deal notes:
Israeli technology firms acted as acquirers in more M&A deals than ever (up from 23% to 35%), signaling a maturing tech industry. Today’s report by Poalim Tech and Dealigence gave us this stat, and tallied total tech sector deal volume at $70 billion YTD over 110 closed transactions.
Our take: a clear signal of the local tech industry growing up. Local startups have become tech titans with the balance sheets to pursue inorganic growth. When over a third of M&A activity is blue-and-white, we’ll see a compounding flywheel effect for local shareholder value.
Meanwhile, telecom equipment distributor Accel Group (TASE:ACCL) cited its two Israeli M&As contributing to its Q3 revenue rising 27% to ₪ 109M; with adjusted EBITDA increasing 19% to ₪ 8M.
Tel Aviv skyline expands
Two Israeli REITs, Azorim Living (TASE:AZRT) and Minrav Group (TASE:MNRV), signed a deal to jointly develop a residential tower in Tel Aviv, a project estimated at ₪ 340M. The 19-story building will include 86 units. Construction is scheduled to begin in 2026.
Our take: The involvement of Azorim, a residential REIT, hints that this project targets the booming “Build-to-Rent” sector in Israel.
Real estate industry shakes the money tree
Israel Land Development (TASE:ILDC) raised ₪ 555M in a bond offering; total demand reached ₪ 1B. New Series 27 raised ₪ 466M at 3.45% interest (CPI-linked); Series 25 expansion ₪ 89M at 3.09% interest (CPI-linked), secured by Nimrodi Tower.
In a market supposedly spooked by high interest rates and geopolitical risk, ILDC refuted this narrative by generating ₪ 1B in demand for a ₪ 555M target. This is a massive vote of confidence from the institutional market, effectively debunking the “real estate freeze” story for top-tier players.
And the real story here is the cost of capital. Securing long-term debt at real interest rates of 3.09%-3.45% is a strategic weapon. While smaller developers are being choked by financing costs, ILDC is locking in cheap money by leveraging trophy assets.
Kardan Real Estate (TASE:KARE) raised ₪ 208M in Series F bond expansion; institutional demand topped ₪ 456M. Priced to yield 5.23% with a 1.48 spread over government bonds. Proceeds will fund debt recycling and a 2,300-unit pipeline through 2026.
The pricing is telling, because a 1.48% spread over government bonds is a confidence premium. Investors are pricing in execution. By raising debt efficiently, Kardan is fueling the engines for that pipeline.
Real estate lender Michlol Finance (TASE: MCLL) raised ₪ 55M in a public equity offering priced at ₪ 12.65 per share, a premium over the closing price. CEO Uri Paz says demand for credit is rising; company targets ₪ 90M-120M net profit by 2027.
TASE snapshot for Dec. 2, 2025
🟢 TA-35 Index: +1.91%
🟢 TA-90: +1.22%
🟢 TA-125: +1.75%
Today’s snapshot aligns nicely with the newest optimistic OECD forecast projecting 4.9% GDP growth in 2026, nearly double the Bank of Israel’s conservative 2.5% estimate. In the meantime, Israeli investors and institutions aren’t waiting around.
That’s our day. 🎉 If you liked this update, please forward it to a friend.
Onwards.
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Disclaimer: This brief is for informational purposes only and does not constitute investment advice. All data current as of publication date.