Nofar in advanced talks to acquire Israeli energy company Highlight for up to $50 million
The potential deal would give Nofar access to a 300-400-megawatt pipeline of solar and storage projects, as the company accelerates its expansion in Israel.
M&A activity is heating up in Israel’s energy market. Calcalist has learned that Nofar Energy, controlled by Ofer Yannay, is in advanced negotiations to acquire energy company Highlight at a valuation of NIS 100 million ($33M) to NIS 150 million ($50M).
Highlight has attracted interest from other players in the market, but Nofar currently has a clear strategic advantage: The companies have signed a memorandum of understanding that includes an exclusivity period for the transaction. Still, market sources emphasize that Highlight’s project backlog is considered substantial relative to its size, meaning another buyer could ultimately emerge if the current negotiations fail to result in a binding agreement.
Highlight was founded by three young entrepreneurs with the backing and financing of southern construction contractor Gabi Buskila. The company is based in Netivot, where Buskila Brothers, the family-owned construction company, is also headquartered. Buskila serves as Highlight’s CEO.
Buskila Brothers operates construction projects across Israel, with a focus on the south, including Eilat, Ashkelon, Dimona and Sderot, as well as projects in the north, including Kiryat Motzkin. About two years ago, the company won a tender from the Israel Land Authority in Migdal HaEmek to build 196 apartments, including 102 designated for rent. At the end of 2025, it won another tender in Ma’ale Adumim to build 105 rental apartments, paying NIS 33 million for the land.
Over time, Buskila increased his stake in Highlight to 92.5%. If the transaction with Nofar is completed at the reported valuation, he is expected to receive more than NIS 100 million in cash.
Highlight has been seeking a buyer for almost a year and has held talks with several companies in the industry. It came close to signing a deal with Shikun & Binui Energy, but those negotiations did not materialize after Shikun & Binui itself entered a sale process. The company was ultimately acquired by Generation Capital at a valuation of NIS 4.45 billion.
Operationally, Highlight does not yet have active revenue-generating projects. Its main asset is a backlog of solar generation and energy-storage projects in various stages of development and construction, connected to high-voltage infrastructure. The projects are concentrated in moshavim, kibbutzim, agricultural areas and private properties, mainly in southern Israel.
The projects have a combined expected generation and storage capacity of approximately 300 to 400 megawatts.
The potential acquisition would be carried out by Nofar Israel, the company’s local arm, which is managed by Nadav Barkan.
The deal comes after an especially active period for Nofar Israel. Last week, the company signed an agreement to acquire a 47.5% stake in the Reindeer power plant for NIS 855 million. The shares are being purchased from Phoenix Insurance and a group of private investors led by Gideon Tadmor, founder of Navitas.
Under the deal, Nofar will acquire a 39.5% stake from Phoenix for NIS 711 million, with the remaining stake purchased from the private investors.
Reindeer, which is planned for construction near Kfar Saba, will have a capacity of 865 megawatts and will be powered by natural gas. Construction costs are estimated at NIS 5.3 billion, with commercial operations expected to begin in 2030.
Nofar Israel’s recent expansion has also been reflected in its valuation. The company is now valued at approximately NIS 2.3 billion post-money following a NIS 200 million investment by Meitav, which is expected to receive an 8.7% stake. That represents a 44% increase from the valuation in an earlier deal with Clal Insurance, which invested approximately NIS 300 million at a post-money valuation of about NIS 1.6 billion.
The increase in Nofar Israel’s valuation reflects the expansion of its development pipeline, the receipt of statutory approvals and progress toward construction and commercial operation following favorable regulatory decisions.
Among its other recent developments, Nofar signed an agreement with Cellcom Energy worth approximately NIS 820 million for the construction of 16 energy-storage facilities with a combined generation capacity of 100 megawatts and storage capacity of 500 megawatt-hours.
Ofer Yannay, who recently returned as CEO of Nofar Energy following the departure of Nadav Tena and Shahar Gershon, is pursuing a strategy centered on rapidly acquiring, developing and ultimately realizing energy assets.
Last week, Nofar also repaid two bond series, Series A and Series E, ahead of schedule, for a total of approximately NIS 400 million. The move came after bondholders in the two series declined to approve changes to the trust deed requested following objections from the Israel Securities Authority regarding the way Nofar calculates financial covenants on its loans.
Nofar’s two largest bond series, Series C and Series D, which together account for approximately NIS 2 billion in debt, supported the company’s position.
