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Israeli Startups Shift to Acquisitions Amid Market Slump

7/13/2025

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Summary

Story summary

Israeli startups are pivoting towards acquisitions instead of IPOs, driven by soaring interest rates and a sluggish market. Major transactions like Melio's $2.5 billion sale to Xero and Next Insurance's $2.6 billion deal with Munich Re highlight this shift. In 2024, Israel's M&A market surged by 35%, mirroring a global trend towards strategic growth through acquisitions.

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Story summary

Israeli startups are pivoting towards acquisitions instead of IPOs, driven by soaring interest rates and a sluggish market. Major transactions like Melio's $2.5 billion sale to Xero and Next Insurance's $2.6 billion deal with Munich Re highlight this shift. In 2024, Israel's M&A market surged by 35%, mirroring a global trend towards strategic growth through acquisitions.