US private equity fund buying Israel’s Windward for NIS 1b

Three years ago, in December 2021, an Israeli technology company Windward.ai It has become listed on London’s AIM market, with a pre-money valuation of €127 million. It is now reported to have been sold to US private equity firm FTV VIII, LP (through a company called Octopus UK Bidco Limited, which was formed for the purposes of the deal) for a price of almost double that valuation, £216 million in cash (about NIS 1 billion). . ).

The share sale price of 215 pence represents a premium of 47% to the market price before the report, and 92% to the average share price over the past six months. Compared to the float price three years ago, the premium is 39%. In that period, the FTSE AIM All Share Index fell by 65%. In response to the sale report, Windward’s stock price jumped 40%, putting it close to the deal price.

Windward was founded in 2010 by CEO Ami Daniel and Matan Peled, who runs the company’s US business. The company’s chairman is former BP CEO Lord John Brown. The company develops and sells a solution to provide real-time information on ships at sea, enabling users such as importers, exporters and logistics providers to make decisions and manage risks. Its clients include energy companies, banks and government agencies. At the beginning of 2024, it employed 170 people, 120 of them in Israel.

Earlier this year, Windward reported that Interpol had selected it to provide intelligence and insights into illicit trade, human smuggling and poaching. The acquisition report notes that FTV “sees an opportunity to accelerate Windward’s continued expansion from its current market position within the maritime sector, into a broader supply chain analytics provider and plans to support the development of Windward’s future product roadmap under private ownership. However, Windward may require investment, which It may reduce profitability in the short to medium term, but should build the strong operational foundations required to support Windward’s next phase of growth, scale its platform globally and drive sustainable value over the long term.

Windward says that since its flotation, its customer base has more than tripled. The company’s independent directors recommended that the American company accept the takeover offer. In providing reasons for doing so, they stated: “While Windward’s independent directors believe that Windward is well placed for continued success in the future and that the long-term prospects are strong as an independent listed entity, they also recognize that there is economic, regulatory and competitive importance.” “There are uncertainties, many of which are beyond Windward’s control.”

“This represents an exciting next step in Windward’s evolution, providing the opportunity to build on our first-mover advantage in marine-generated AI through accelerated innovation and greater market reach,” Amy Daniel said. “We are extremely proud of the growth we have achieved while in the AIM market, and our ability to adapt and integrate cutting-edge technology, especially generative AI.”

“Now is the right time to replicate this success across additional geographic markets. Additionally, being US-owned is expected to facilitate rapid penetration and growth in the US market,” he added.

In the first half of 2024, Windward generated revenue of $17.6 million, 37% higher than in the first half of 2023. EBITDA was negative $1.3 million, compared to EBITDA of 3.8 million dollars in the corresponding period and at the end of the year. The half had cash of $13.8 million.

Windward is represented by CMS Cameron McKenna Nabarro Olswang LLP and Epstein Rosenblum Maoz (ERM). Willkie Farr & Gallagher (UK) LLP and Gornitzky & Co. As legal advisors to FTV.

Published by Globes, Israel Business News – en.globes.co.il – on December 24, 2024.

© Copyright Globes Publisher Itonut (1983) Ltd., 2024.


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