NEW YORK and TEL AVIV, Israel, Sept. 4, 2024 /PRNewswire/ -- Arieli EL, part of the Arieli group of companies, announced today the closing of its $53.2 million acquisition of a 59.14% controlling stake in Elron Ventures (TASE: ELRN) from Discount Investment Corporation Ltd. The acquisition of Elron Ventures (Elron) includes a 50% stake in Rafael Development Corporation (RDC), a joint venture with Rafael Advanced Defense Systems (Rafael), a leading global defense company. The acquisition highlights Arieli's continued commitment to advancing solutions that address critical global needs across multiple sectors, including cybersecurity and B2B software.
From left to right: Evan Renov, Managing Partner, Lisya Bahar-Manoah, Managing Partner, and Eric Bentov, Managing Partner, Arieli EL. (Credit: Biana Karou)
Elron Ventures has over $250 million in assets under management (AUM) and its portfolio includes over 19 companies across the cybersecurity, B2B Software, and health-tech spaces. Since 2010, Elron's portfolio has had 15 exits, totaling $2.2B.
Lisya Bahar-Manoah, Managing Partner at Arieli EL, who led the acquisition and joined the board as Chairperson, said, "Elron is a cornerstone of the Israeli high-tech ecosystem. At Arieli EL, we are committed to working with the Elron and RDC management teams to advance and grow the portfolio". Arieli EL Managing Partners Eric Bentov and Evan Renov have also joined the Elron board of directors.
"Rafael welcomes Arieli EL and looks forward to advancing RDC's success in the venture capital market. We are confident that this partnership with Arieli EL, our joint venture in RDC, and Elron's management team, will bring significant achievements in the future," said Yaron Kulas, Vice President of Mergers and Acquisitions at Rafael.
Arieli EL aims to utilize its extensive global ecosystem and investment experience for the benefit of Elron and its portfolio companies. Arieli EL is positioned to act as a force multiplier, driving growth and investments in cyber, B2B software, and civil-use technologies.
"We are thrilled to have the opportunity to combine Elron's experience in nurturing Israeli tech ventures with Arieli's global reach and business capabilities," said Yaron Elad and Elik Etzion, Elron's management team.
The growing dependence on advanced technologies to tackle emerging cyber threats emphasizes the strategic importance of the Elron portfolio, including companies such as Cybersixgill, a cyber intelligence platform that detects and defuses threats from the clear, deep and dark web; Cynerio, a healthcare cybersecurity company that ensures patient safety and data protection by securing the connected medical device ecosystem; IRONSCALES, an automated phishing prevention, detection & response platform; Cyvers, providing a real-time platform for detecting and mitigating cyber attacks on digital assets; and Wonder Robotics which offers intelligent and robust 360° self-awareness software for drones in the defense and civilian markets.
About Arieli EL Ariel EL, part of the Arieli Family Office and the Arieli group of companies, addresses global challenges with a forward-thinking investment strategy. The Arieli group specializes in High-tech and Healthcare investments, providing unique opportunities to their family offices and institutional investors. The Arieli group of companies partners with the next generation of technology companies, providing its portfolio access to a global network. For more information, please visit www.arielifamilyoffice.com.
About Elron Ventures Elron Ventures (Elron), a leading early-stage cybersecurity and B2B software investor, is committed to turning promising ideas into global industry leaders, with a strong track record of investments and successful M&As worldwide. Elron's holdings include a 50% stake in Rafael Development Corporation (RDC), a joint venture with Rafael Advanced Defense Systems (Rafael), a leading global defense company. This partnership offers founders the unique opportunity to develop and test their technologies alongside top IT and cyber professionals. Among the portfolio are IRONSCALES, SAYATA, Red Access and Scribe Security. For further information, please visit https://elronventures.com.
Forward-Looking Statements This release contains forward-looking information about Arieli EL ("Arieli") which involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Accordingly, any statements included in this communication are not statements of historical facts but may be deemed to be forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements are, in some cases, accompanied by words such as "may," "should," "would," "could," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "seem," "seek," "continue," "future," "will," "expect," "outlook" or other similar words, phrases or expressions and the negatives of such words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding Arieli's expectations of future events, future opportunities, global expansion and other growth initiatives and Arieli's investments in such initiatives. These statements are based on various assumptions and known or unknown risks, uncertainties and other factors, and actual results may differ materially. Neither Arieli nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Arieli assumes no obligation to update any forward-looking statements or information contained in this communication except to the extent required by law.
