Israeli dealmaking nears $100bn as mega tech transactions reshape the market

Israel’s deal market is approaching the $100 billion mark, driven by a wave of major technology transactions and continued strong international investor interest, according to a new report from Grant Thornton Israel (Fahn Kanne).

In its annual review of transactions, the leading accountancy firm highlights that that 2025 will be remembered as the year of the “mega deals”, with 616 announced deals valued at approximately $97.6 billion – one of the largest totals ever recorded in the Israeli market.

Shlomi Bartov, CEO of Grant Thornton Israel Advisory, said the figures “represent deep trust in Israeli innovation, even in a period of uncertainty.

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“A significant part of the cash is currently in the pipeline of execution, but the foundation has been set for strong growth in the coming years,” he said.

While only around $25 billion worth of transactions have so far been completed, the report notes that many of the largest transactions are expected to close into 2026, pushing the overall market total towards $100 billion.

Technology remained the clear engine of the market throughout 2025, with 84 per cent of all deals involving companies in tech-led sectors such as cyber security, software, artificial intelligence and fintech.

Grant Thornton said the figures reinforce Israel’s position as one of the world’s most active innovation hubs, continuing to attract strategic buyers and investors despite economic and geopolitical uncertainty.

Some sectors, including insuretech, drew less attention than stronger-performing areas such as cleantech and fintech, but the overall trend remained firmly focused on high-growth technology.

The defining feature of 2025, the report argues, was the accumulation of exceptionally large transactions.

Deals worth an estimated $65 billion have already been announced, but many are expected to complete only during 2026.

Among the standout examples were Google’s acquisition of Wiz and Palo Alto Networks’ purchase of CyberArk, landmark transactions that helped push total volumes towards the $100 billion threshold.

American investors continued to play the central role in Israeli dealmaking, being involved in approximately 88 per cent of transactions during the year.

However, Grant Thornton also points to the first signs of renewed European participation, particularly from Germany, Switzerland and Belgium, suggesting a gradual broadening of international capital flows.

In a notable first, the report also highlights the participation of a Saudi investor in an Israeli company – an early indication of potential future interest from Gulf markets.

The report adds that easing inflation and a gradual decline in interest rates could support deal completions as Israel’s mergers and acquisitions market continues its recovery.