The acquisition underscores the continued strength of the Israeli cyber and B2B software, where cyber exits accounted for 51% of total tech transactions in 2023. Lisya Bahar-Manoah is leading the acquisition and has joined Arieli EL as Managing Partner.
NEW YORK and TEL AVIV, Israel, July 22, 2024 — Arieli EL, part of the Arieli group of companies, has today announced the acquisition of a 59.1% stake in veteran cyber and B2B software holding company Elron Ventures (TASE: ELRN) for $53.2 million from Discount Investment Corporation Ltd. This acquisition highlights the significant market opportunities within the Israeli ecosystem, especially in cybersecurity and defense. Lisya Bahar-Manoah, Managing Partner at Arieli EL, is leading the acquisition of Elron Ventures (Elron).
Gartner forecasts that security and risk management spending will reach over $200 billion globally in 2024, representing a 14.3% year-over-year growth. This trend demonstrates the growing importance of cybersecurity, a sector where Israel, home to over 500 cybersecurity companies, is regarded as a global leader.
“The gap between real-time cyber solutions and evolving cyber threats is a critical challenge,” said Lisya Bahar-Manoah, Managing Partner at Arieli EL. “In 2023, there were more than 300 million victims of cybercrime globally, with data breaches rising by 78% in the US alone. Israeli cybersecurity exits in 2023 grew by 65% totalling $7.1 billion, and we see this trajectory only gathering pace in 2024 as demonstrated by reports of Google’s acquisition of Wiz for $23 billion. We are excited to be partnering with Elron’s team as well as Elron’s joint venture with Rafael Advanced Defense Systems (Rafael) to further contribute to this sector and continue building innovative solutions for sustained growth.”
Elron Ventures has over $250 million in assets under management (AUM) and its portfolio includes over 19 companies across the cybersecurity, B2B Software, and health-tech spaces. Since 2010, Elron’s portfolio has had 15 exits, totaling $2.2B. Notable portfolio companies include: Cynerio, a healthcare cybersecurity company, ensures patient safety and data protection by securing the connected medical device ecosystem; Cybersixgill, developing automated threat intelligence solutions across the clear, deep, and dark web; Cyvers, offering a real-time platform for detecting and mitigating cyber attacks on cryptocurrency and digital assets; IRONSCALES, an automated phishing prevention, detection & response platform; Sayata, automating insurance company processes; Red Access, providing the first agentless platform to secure all browsing activities of corporate employees on any browser, web app or cloud service and Scribe Security, providing a comprehensive solution to secure software supply chains.
“We are excited to have the opportunity to combine our joint experience and know-how in nurturing Israeli tech ventures throughout all stages of growth with Arieli’s vast global network to provide the platform for our portfolio’s success,” said Dan Hoz, Chairman of the Elron Venture’s board.
About Arieli EL
Arieli EL, part of the Arieli group of companies, addresses global challenges with a forward-thinking investment strategy. Arieli EL has deep roots in the global family office space, specializing in High-tech and Healthcare investments. Arieli EL strives to provide family offices and institutional investors with access to unique opportunities while providing portfolio companies access to our global network.
About Arieli Capital
Arieli Capital (Arieli) is a multifaceted global investment firm that is an active investor and partner in the next generation of technology companies. Arieli Capital continuously strives to identify and support companies creating real impact while keeping financial returns as the primary objective. Arieli is a recognized global leader in innovation, creating and operating programs across governmental, academic and corporate partnerships.
About Elron Ventures
Elron Ventures is a leading early-stage investor committed to turning promising ideas into global industry leaders, with a proven track record of investments and successful M&As worldwide. Elron invests in cyber security and B2B software.
