Arieli EL to Acquires a 59.1% Stake in Elron Ventures, a Leading Cybersecurity and B2B Software Holding Company, for $53.2M

Rhea-AI Summary

Arieli EL has acquired a 59.1% stake in Elron Ventures (TASE: ELRN) for $53.2 million from Discount Investment This acquisition highlights significant market opportunities in the Israeli cybersecurity and B2B software ecosystem. Elron Ventures has over $250 million in assets under management and a portfolio of 19+ companies. Since 2010, Elron's portfolio has had 15 exits totaling $2.2 billion. The acquisition is led by Lisya Bahar-Manoah, Managing Partner at Arieli EL, who emphasizes the growing importance of cybersecurity in light of increasing cyber threats and data breaches globally.

Positive

• Acquisition of a majority stake (59.1%) in Elron Ventures for $53.2 million
• Elron Ventures has over $250 million in assets under management
• Elron's portfolio includes 19+ companies in cybersecurity, B2B Software, and health-tech
• Since 2010, Elron's portfolio has had 15 exits totaling $2.2 billion
• Acquisition provides access to the growing cybersecurity market, expected to reach over $200 billion globally in 2024

Negative

• None.

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 /PRNewswire/ -- 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. For more information, please visit www.arielifamilyoffice.com.

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. For more information, please visit www.arielicapital.com.

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. For further information, please visit https://elronventures.com.

Forward-Looking Statements

This release contains forward-looking information about Arieli EL ("Arieli") which involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Accordingly, any statements included in this communication are not statements of historical facts but may be deemed to be forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements are, in some cases, accompanied by words such as "may," "should," "would," "could," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "seem," "seek," "continue," "future," "will," "expect," "outlook" or other similar words, phrases or expressions and the negatives of such words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding Arieli's expectations of future events, future opportunities, global expansion and other growth initiatives and Arieli's investments in such initiatives. These statements are based on various assumptions and known or unknown risks, uncertainties and other factors, and actual results may differ materially. Neither Arieli nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Arieli assumes no obligation to update any forward-looking statements or information contained in this communication except to the extent required by law.

Contact
Lisya Bahar-Manoah, Managing Partner
Arieli EL
+972 52-605-6029; lisya@arielifamilyoffice.com 

Investor Relations
Sapir Lifshitz, Investor Relations
Arieli EL
+972 54-211-1331; sapir@arielifamilyoffice.com 

Media Relations
Nataf Dgani, Head of Marketing
Arieli Capital LLC
+972-547573384; nataf@arielicapital.com  

Joseph Moses, CEO
Campaign PR
+447308349833; joseph@campaignpr.tech

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SOURCE Arieli EL

FAQ

What percentage stake did Arieli EL acquire in Elron Ventures (ELRNF)?

Arieli EL acquired a 59.1% stake in Elron Ventures (TASE: ELRN).

How much did Arieli EL pay for the stake in Elron Ventures (ELRNF)?

Arieli EL paid $53.2 million for the 59.1% stake in Elron Ventures.

What is the total value of assets under management for Elron Ventures (ELRNF)?

Elron Ventures has over $250 million in assets under management (AUM).

How many exits has Elron Ventures (ELRNF) had since 2010?

Since 2010, Elron's portfolio has had 15 exits, totaling $2.2 billion.

Who is leading the acquisition of Elron Ventures (ELRNF) for Arieli EL?

Lisya Bahar-Manoah, Managing Partner at Arieli EL, is leading the acquisition of Elron Ventures.