Sky weighs exit from iCon as Apple distributor's shares rebound 55% this year
The private equity fund has held talks with several potential buyers for its 42.5% stake in iCon Group, which has returned to profitability after losing KSP as a major customer and is now benefiting from the AI-driven demand for computing hardware.
The Sky fund is considering selling its controlling stake in iCon Group, the parent company of the iDigital retail chain and the official distributor and importer of Apple products in Israel. Calcalist has learned that Sky managers Zvi Yochman and Nir Dagan have held meetings in recent weeks with several parties interested in acquiring control of the company.
Private equity funds typically have a lifespan of around seven years, followed by an additional period in which they can realize investments and return capital to investors. Sky, which holds 42.5% of iCon Group, a stake currently worth approximately NIS 186 million, has therefore begun considering an exit from the investment.
Sky acquired its stake in iCon in a transaction worth more than half a billion shekels over the course of its investment, while the company is currently valued at NIS 437 million on the Tel Aviv Stock Exchange. Its share price has risen 55% since the beginning of the year, driven by improved results and rising profits.
iCon Group operates in two main areas. The first is retail and distribution, which includes the marketing and sale of Apple devices, smartphones, computers, watches and other products through the iDigital store chain.
The second business, which accounts for approximately 75% of sales, is the import and distribution of Apple products, computing and software, communications, cloud solutions and information-security products, alongside related equipment from brands including Lenovo, Asus, IBM and Check Point. The business serves the Israeli market through a network of distributors.
Last week, iCon Group, headed by CEO Doron Sela, published its first-half 2026 results, reporting net profit of NIS 22.4 million, a 78.5% increase from NIS 12.5 million in the corresponding period a year earlier.
Revenue rose 20.6% to NIS 860 million, compared with NIS 712 million in the first half of 2025, despite Operation Roaring Lion, which resulted in significantly lower traffic at the company's stores between March and June.
The decline in the dollar's exchange rate reduced distribution revenue by NIS 114 million. Nevertheless, overall revenue increased, primarily because of higher sales of computers and peripherals and growing demand driven by the increasing use of AI applications. The expansion of AI workloads is pushing consumers and businesses to upgrade their computing systems to meet higher processing requirements, boosting sales of more advanced processors, computers with greater memory capacity and more powerful graphics cards.
The company also benefited from higher global prices for hardware, including servers, memory and personal computers.
As a result, iCon's gross margin increased to 10.7%, from 10% in the previous half-year. Operating profit rose to 4% of revenue, compared with 3.1%, while the net profit margin increased to 2.6%, from 1.8%.
EBITDA, or earnings before interest, taxes, depreciation and amortization, reached NIS 90 million. Based on the company's current performance, Sky is seeking a valuation equivalent to roughly six to seven times EBITDA.
Sky, managed by Yochman and Dagan, acquired control of iCon in 2017 for NIS 110 million from partners in Pitango Venture Capital, Tzachi Hillel, Aaron Mankovski, Chemi Peres, Zeev Binman, Rami Kalish and Rami Beracha, who had held the company privately.
Poalim Equity, the investment arm of Bank Hapoalim, acquired a 20% stake in the company in 2020 for NIS 70 million. That year, iCon generated revenue of NIS 980 million.
At the time, iCon was Apple's exclusive distributor in Israel. That exclusivity later ended after Apple itself took control of the franchise, allowing KSP to become an official importer and creating a powerful new competitor for iCon.
iCon went public on the Tel Aviv Stock Exchange in 2021 at a valuation of NIS 775 million. But in March 2022, the company announced that KSP, its largest distribution customer, accounting for 18% of sales, would become an official Apple importer in Israel.
The move meant that iCon not only lost a major customer but also gained a powerful competitor. Its shares plunged 30% on the day of the announcement.
Sky, which sold shares worth NIS 40 million in the offering, and Pitango's managers, who sold shares worth NIS 15 million, faced criticism over the timing of the sales, which came shortly before the company's market value collapsed.
From then until September 2025, iCon struggled to recover, with its market value generally ranging between NIS 200 million and NIS 250 million.
The subsequent recovery, which has brought the company to its current market value of NIS 437 million, has been driven by a new strategic plan under Sela, growing sales and the increasing adoption of AI.
Among the parties that have met with Sky's managers are trading company Benda Magnetics, electrical-products importers Brimag and Isfar, and an entity that sought to bring together institutional investors into a purchasing consortium.
The discussions did not progress to formal negotiations and have not resulted in a deal. However, sources familiar with the process expect more serious talks over the coming weeks and months. Potential transactions could range from the sale of part of Sky's stake to a deal involving all of the fund's shares in iCon.
Sky did not respond to a request for comment.
