Opinion
How Israel’s M&A market is thriving despite the war
While global headlines portray Israel as a high-risk market, some of the largest M&A deals in the country’s history took place this year - and for good reason.
Global headlines continue to portray Israel as a high-risk market, overshadowed by conflict and uncertainty. Yet beneath the noise, the reality tells a very different story. Already in 2025, Israel has witnessed some of the largest M&A deals in its history — from Google’s $32 billion acquisition of Wiz to Palo Alto’s $25 billion purchase of CyberArk, and Advent International’s $2.5 billion takeover of Sapiens. Far from slowing down, Israel’s M&A market is thriving, and the key question is why.
The answer lies in a combination of strong fundamentals, experienced investors, global strategic imperatives, and local resilience. Israeli startups and growth-stage companies offer far more than promise; they have established track records, globally competitive technologies, and defensible intellectual property. Buyers are not speculating on future growth but acquiring real businesses that solve urgent global problems. This makes them compelling targets regardless of external volatility.
International buyers and private equity firms familiar with the Israeli ecosystem also play a central role. With deep knowledge of the market, they are able to assess and price risk accurately, relying on in-depth diligence rather than headlines. Many global funds now maintain dedicated Israel teams and long-standing local partnerships, enabling them to bridge the gap between perception and reality and act decisively even during periods of uncertainty.
Beyond the mechanics of deal-making, the acquisitions are often driven by global necessity. Cybersecurity, AI, and digital infrastructure are no longer optional — they are critical. Israeli innovation leads the world in these domains, and the rise in cyberattacks, high-profile data breaches, and the rapid adoption of AI make such acquisitions less opportunistic and more imperative. For global players like Google or Palo Alto, acquiring Israeli firms is essential to secure capabilities and remain competitive in industries where innovation cycles move faster than ever.
Another factor that consistently underpins Israel’s M&A strength is cultural resilience. Founders and management teams continue to innovate, scale, and expand globally, regardless of the surrounding environment. Time and again, Israeli companies have raised capital, built global operations, and achieved successful exits in times of both conflict and calm. This resilience is hard to replicate and forms part of the hidden value that global buyers recognize.
Negative headlines, then, often distort perception. They exaggerate risks and obscure the reality of a market where deal activity remains robust. M&A decisions are anchored in fundamentals, due diligence, and strategic priorities, not in the news cycle. Those investors able to look beyond the mirage of instability are finding opportunities that others miss.
Looking ahead, there is little sign of momentum slowing. Deal pipelines in AI, cybersecurity, fintech, and the energy transition remain strong, and the urgency of global challenges in these sectors ensures that Israeli innovation continues to attract international attention. The next wave of acquisitions may prove just as transformative as the record-breaking deals already announced this year.
The lesson for global investors is clear. Israel is not a high-risk gamble but a high-value opportunity. The surge in record-breaking M&A deals demonstrates the market’s resilience and the enduring strength of its innovation-driven sectors. Even amid geopolitical turbulence, strategic value, disciplined diligence, and sophisticated deal structuring continue to draw capital from around the world. Israel’s M&A market is thriving not in spite of the turbulence, but because the most sophisticated investors know how to look past the headlines and uncover the real story.
The writer is Head of M&A at Willis (WTW) Israel.
