Acquisitions continue for companies past and present

As one of the strongest startup nations globally, Israel has a long history of acquisitions in which standout tech solutions are snapped up by global investors and big tech firms looking to strengthen their portfolios. 

For instance, 2017 saw one of the most lucrative acquisitions when Intel paid $15.3 billion for Jerusalem-based MobileEye. And in 2024, Israeli cybersecurity company Wiz has been set to break the record for the most expensive acquisition in Google’s history at $23 billion. 

While these massive price tags are certainly impressive, the country has also seen great success by using acquisitions and mergers to build on the strengths of local companies into something greater than the sum of its parts. 

Ness Digital Engineering is an example of this in action. Ness was founded in Israel in 1999 through a merger of six prominent IT companies in the country, who each brought decades of knowledge and expertise to the table. 

This combined experience helped Ness advance, helping it transition into a global enterprise working with some of the largest names in business. 

The spirit of strengthening the offerings of the business through strategic acquisition is something that remains a core part of the Ness strategy to this day, as illustrated by recent news that RSL was acquired by the company to bolster its foothold in tech, media and telco verticals. 

Digital solutions are transforming media brand results  

In Israel, the media and tech sectors are a reflection of its vibrancy, with over 500 companies specializing in various facets of the industry.

The rise of these companies is something we’re also seeing globally as digital solutions become more sophisticated. E-commerce blends with media, advertising and OTT providers continually push the boundaries with creative campaigns, while telcos bring these opportunities seamlessly into the hands of users. 

As a result, media brands are launching experiences that take this potential forward. For instance, Forbes predicts digital marketplaces will drive the next wave of innovation for telcos globally. 

The demand for this is highlighted by the launch of Virgin Media’s new digital payment system that is looking to remove friction from online customer experiences, and highlights how technology can solve ongoing legacy issues in the back-end of operations.

A merger of minds and expertise 

There are many ways that acquisitions can play out once the deal has been signed. In the case of Ness, it’s interesting to note the collaborative approach taken with their most recent acquisition. 

The announcement notes that CEO of RLS will join Ness’s executive team and continue to lead existing business relationships, ensuring an effective transition.

The engineering teams and senior management will also play a key role during the transition, to blend the skills and capabilities of the two teams together. Ness, which relocated its headquarters this year to the World Trade Center in New York and currently does not have an office in Israel, will look to leverage the acquisition to expand its Silicon Valley presence. 

“The acquisition of RSL is complementary to Ness’s product engineering DNA and strengthens our TMT vertical,” said Dr. Ranjit Tinaikar, CEO of Ness Digital Engineering. 

Ness CEO Ranjit Tinaikar (image free for use on a commercial platform in accordance with copyright law, courtesy of Ness)

Added Raja Venkataraman, CEO of RSL, “We are excited to join Ness and the KKR family. Together, we can scale our proficiency in mobile, web, and IoT development to new heights, while expanding the impact of our cutting-edge solutions.”

M&A and KKR playing an important role in Israel’s tech ecosystem

Ness was acquired in October of 2022 by KKR, whose portfolio of technology investments includes Cloudera, Yayoi, Probe CX, and MYOB, among others.

Twelve months ago KKR’s Level Access acquired Israel digital accessibility startup Userway in a deal valued at $99 millon. Started in 2016 by its CEO Allon Mason, UserWay developed an AI-based technology to improve website accessibility to those with disabilities due to dyslexia.

Last month Cloudera, which is owned by KKR, acquired Israeli company Octopai to advance metadata and AI integration.

KKR also invested $130 million in Israeli property management software provider Guesty in April of this year.