Friday, May 11, 2012

EMC, Intel and other giants expand Israel operations

EMC, Intel and other giants expand Israel operations

Ambassador (ret.) Yoram Ettinger, "Second Thought”

Straight from the Jerusalem Boardroom #161, May11, 2012

1. The $58BN MA-based EMC acquired Israel's XtremIO for $430MN, in addition to its existing Israeli R&D center, which employs 750 persons. EMC intends to expand its Israeli presence, as has been done by Intel (Globes business daily, May 11, 2012). The Mansfield, MA-based $26BN healthcare giant, Covidien acquired Oridion, an IsraAeli developer of devices for patients' breathing safety from $346MN, following its March 19 acquisition of Israel's SuperDimension for $300MN (Globes, April 6). J.P. Morgan acquired 7% of Israel's Conduit for $100MN (Globes, Apri 10). ProSeibenSat, the German communications giant acquired Israel's July-August Productions for 10MN Euros (Globes, May 11).

2. The Israeli-developed processor, Sandy Bridge, was responsible for 40% of Intel's 2011 global sales. Intel's Israeli operations have been responsible for most of Intel's processor breakthroughs. Currently, Intel refits one of its two manufacturing plants in Israel with a $3BN investment. Intel-Israel hired additional 700 persons in 2011 and plans to add 600 in 2012, employing 8,000 persons and exporting $2.2BN in 2011, expecting a higher volume in 2012. No one was laid off during the 2008-9 economic slowdown. Israel is the third largest Intel investment, following China and India. During the last 15 years, Intel invested in 64 Israeli companies ("The Times of Israel,” March 20).

3. Stratasys, the Minneapolis-based manufacturer of 3D printers and production systems for prototyping and manufacturing applications, has merged with Israel's Objet Ltd., a leading manufacturer of 3D printers for rapid prototyping, forming a global leader in the 3D printing and direct digital manufacturing industry. The equity of the merger is $1.4BN, 45% owned by Objet's shareholders (Globes, April 17).

4. The Silicon Valley-based Accel Partners invested $14MN in Israel's DragonPlay (Globes, April 4). Cisco Systems joined the Cambridge, MA-based Venrock and the Menlo Park-based Benchmark Capital in a $13MN 1st round of private placement by Israel's Ctera (Globes, mMarch 23). WPP, the world largest communications service group (158,000 employees in 107 countries) made its first move into E-Commerce, investing $7MN in a 2nd round of private placement by Israel's MySupermarket (Globes, April 20). Marc Cuban, the owner of the Dallas Mavericks and an entertainment billionaire, invested $3MN in Israel's Vringo (Globes, April 16).

Shabbat Shalom and have a pleasant weekend,

Yoram Ettinger, "Second Thought: US-Israel Initiative"

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