Israel Canada to take control of Acro in $3.2 billion merger
Luxury real estate firms unite in cash-and-stock deal reshaping Israel’s high-end housing market. Israel Canada's controlling shareholders also leverage stakes in Canada Global, with ties to Adam Neumann's Flow and Wiz CEO Assaf Rappaport.
Real estate companies Israel Canada and Acro Real Estate have announced a merger agreement, confirming the exclusive report published on Wednesday by Calcalist. Israel Canada will acquire control of Acro, creating a combined entity valued at 10 billion NIS (approximately $3.22 billion). Both companies operate primarily in the luxury residential sector.
The transaction establishes a valuation of 6.9 billion NIS ($2.22B) for Israel Canada and 3.1 billion NIS ($998M) for Acro. The deal will be executed through a combination of cash (40%) and stock (60%). Acro shareholders will receive a total of 1.24 billion NIS ($399M) in cash, equivalent to 19.66 NIS ($6.32) per share, alongside 1.458 Israel Canada shares. Upon completion, current Acro shareholders will hold a 21.23% stake in Israel Canada.
Prior to the merger, Israel Canada traded on the Tel Aviv Stock Exchange at a market capitalization of 7 billion NIS ($2.25B), having increased by 31% over the past three months. Acro traded at 2.8 billion NIS ($900M), with its share price remaining largely unchanged during the same period. Tzachi Arbov is the controlling shareholder of Acro, holding a 25.8% stake.
The agreement was signed on Wednesday night and formally announced by the companies following the initial report by Calcalist. The transaction is subject to approval by the shareholders of both companies, as well as the relevant regulatory authorities.
Asaf Touchmair and Barak Rosen, the controlling shareholders of Israel Canada, also hold the controlling interest in Canada Global, a company focusing on international real estate with an emphasis on Miami, USA.
Canada Global’s shareholders also include Assaf Rappaport, CEO and founder of the cybersecurity company Wiz (currently being sold to Google for $32 billion), and Adam Neumann, founder of WeWork, who now heads the real estate firm Flow, through which he holds his stake in Canada Global.
Flow and Canada Global share a strategic partnership agreement under which Flow will source transactions for Canada Global, receiving an option to acquire up to 50% of each deal. The prominent venture capital firm Andreessen Horowitz is a major investor in Flow.
