Paradigm Geophysical deal boosts private equity investment

Led by the $1 billion buyout of Paradigm Geophysical, IVC-GKH reports private equity investment in Israel was $1.63 billion in the second quarter, the highest for two years.

The $1 billion acquisition of Paradigm Geophysical Ltd., a developer of software for the oil and gas exploration industry, which was acquired by Europe's Apax Partners and JMI Equity for $1 billion, made the second quarter of 2012 a very successful one for Israel so far as private equity investment was concerned.

According to the latest IVC Research Center - Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co. (GKH) survey, in the second quarter of 2012, there were 13 private equity deals valued at $1.63 billion, the highest quarterly amount in two years, mostly due to the Paradigm Geophysical deal, which accounted for 61% of the total invested in the quarter. This figure was triple the corresponding quarter of 2011, and thirteen-fold higher than the preceding quarter.

Herzliya-based Paradigm Geophysical was initially acquired by US private equity fund Fox Paine in 2002 for $91 million at that time the largest ever private equity investment in an Israeli company.

In the first half of 2012, 23 Israeli private equity deals accounted for $1.75 billion, 49% higher than $1.18 billion invested in 33 deals in the corresponding period of 2011.

Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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