Entitle's IP heads to the US, leaving a NIS 29M tax bill behind
Entitle sold its shares to BeyondTrust for $85 million in 2024. Now it's selling the company's patents and goodwill for $39 million.
The startup Entitle sold its intellectual property, a cloud permissions management system, to its American parent company BeyondTrust for NIS 124 million, and is due to pay tax of approximately NIS 29 million (23%) on the removal of the patents, rights, and goodwill from Israel, before various offsets. This emerges from documents the company filed with the court.
The sale of the intellectual property is a second stage following the exit: the sale of all of Entitle's shares in April 2024 to BeyondTrust, for $85 million (approximately NIS 320 million at the dollar exchange rate at the time).
The taxation at that stage was on the shareholders themselves and stood, before offsets, at between 23% and 25% on the capital gain generated for the holder — depending on whether the holding was by an individual or a company.
It has come to light that in December 2025 an additional stage of the deal took place: the removal of all the intellectual property from Israel, with the local branch remaining only as an R&D center entitled to a 6% margin on costs. The consideration for the deal was set at $39 million, which is approximately NIS 124 million at the dollar exchange rate on the day of the deal. This deal is theoretically subject to payment of corporate tax of 23%, which amounts, as noted, to approximately NIS 29 million. This is not a final sum, since the company is entitled to offset, for example, accumulated losses.
Calcalist notes that according to the documents, BeyondTrust's payment to Entitle for the intellectual property was in exchange for a promissory note and not in cash. At the same time, according to the documents, against the promissory note, the Israeli company provided the American company with that same amount as a loan, in exchange for interest of 7.3%. At this stage it is not clear whether the deal's structure is part of tax planning.
Entitle was founded in 2021 by CEO Ron Nissim and CTO Avi Zetzer, who met during their military service in Unit 8200. The company developed a solution of systems for managing access to software and cloud infrastructure and offers a response to processes that were handled manually. The system makes the process of requesting and granting access to organizational resources automatic, thereby enabling fast and secure access.
BeyondTrust was founded in 2006 and in 2009 was acquired by Symark. In 2014 the investment fund Veritas acquired the company for approximately $310 million, and in 2018 sold it to the software company Bomgar, which adopted the name BeyondTrust. The acquirer employs over 1,500 employees.
