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Advisory Assignments

In addition to identifying and investing in promising young start ups, the Partners of Israel Venture Partners have had the privilege of providing investment banking and corporate finance advice to some of the most prestigious companies in Israel over the years. This has included advising on the Privatization of Israel Chemicals, listing Koor Industries on the New York Stock Exchange, and advising and acting as Joint Book Running Manager, on the Initial Public Offering of CheckPoint Software. Some of our most prominent advisory assignments are listed below.

Cinema City

The Partners of IVP advised Israel International Theaters (ITIT) on its listing on the European Stock Exchanges to raise initial capital for the roll out into Poland and Eastern Europe.

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The Partners of IVP advised Israel International Theaters (ITIT) on its listing on the European Stock Exchanges to raise initial capital for the roll out into Poland and Eastern Europe. In 2006, the company relisted its Cinema City subsidiary on the Warsaw Stock Exchange. Cinema City International N.V. (the ‘Company’ or ‘Cinema City’), incorporated in the Netherlands, is a subsidiary of I.T. International Theatres Ltd. (‘ITIT’ or ‘parent company’). The Company (and together with its subsidiaries, the ‘Group’), is principally engaged in the operation of entertainment activities in various countries including: Poland, Hungary, the Czech Republic, Slovakia, Bulgaria, Romania and Israel. The Company, through related entities, has been a family operated theatre business since 1929. The Company shares are traded on the Warsaw Stock Exchange. As at 12 March 2013, the market price was PLN 28.10 (EUR 6.79) per share, giving the Company a market capitalisation of EUR 347.7 million. The Company’s office is located in Rotterdam, the Netherlands.

Cinema City is the largest cinema operator in Central and Eastern Europe as well as in Israel and the fourth largest cinema operator in all of Europe. The Company operates 98 multiplexes with a total of 952 screens in 7 countries: Poland, Israel, Hungary, the Czech Republic, Romania, Bulgaria and Slovakia. In the CEE countries the Company operates cinemas under the Cinema City brand and in Israel under the Yes Planet and Rav-Chen brands. Theatre operations are the Company’s core business comprising selling tickets, snacks and beverages in concession stands as well as of cinema advertising run under its brand name New Age Media. The Company also maintains an exclusive arrangement with IMAX® Corporation to develop IMAX® theatres in the countries of its operation. The Company is one of the fastest growing cinema chains with plans to open 31 new multiplexes (approximately 340screens) underpinned with binding lease agreements.The Company also operates film distribution through its local subsidiary companies branded Forum Film in all its countries of operations.

Exit / Outcome: Today, Cinema City is majority controlled by Israel International Theaters, and holds a Euro 360 million market valuation on the Warsaw stock exchange.

Applied Materials

Partners of Israel Venture Partners advised on the acquisition by Applied Materials of Opal and Orbot in Israel in 1996 for some $285 million.

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Partners of Israel Venture Partners advised on the acquisition by Applied Materials of Opal and Orbot in Israel in 1996 for some $285 million. Applied Materials, Inc. is an American corporation that manufactures semiconductor,TFT LCD display, Glass, WEB and solar (crystalline and thin film) products. The company is headquartered in Santa Clara, California in the Silicon Valley.

Applied Materials creates and commercializes nanomanufacturing technology used in the production of semiconductor (integrated circuit) chips for electronic gear, flat panel displays for computers and television, glass coatings for homes and buildings, web(flexible substrate) coatings for industry and photovoltaic solar cells and modules using both thin film and crystalline (wafer or bulk) photovoltaic technology.

In November 1996, Applied Materials acquired two Israeli companies for an aggregate amount of $285 million. Opal Technologies and Orbot Instruments for $175 million and $110 million in cash, respectively. Orbot produces systems for inspecting patterned silicon wafers for yield enhancement during the semiconductor manufacturing process, as well as systems for inspecting masks used during the patterning process. Opal develops and manufactures high-speed metrology systems used by semiconductor manufacturers to verify critical dimensions during the production of integrated circuits.

Israel Chemicals

The partners of IVP, principally Craig J. Marshak, were involved in leading the advisory assignment to privatize Israel Chemicals, and to sell the control stake to Israel Corporation.

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The partners of IVP, principally Craig J. Marshak, were involved in leading the advisory assignment to privatize Israel Chemicals, and to sell the control stake to Israel Corporation. ICL was formed in 1968 as a conglomerate of the Dead Sea Works and other state-owned companies that extracted minerals from Negev desert mines. 90% of ICL’s sales are exports. A major player on world markets, ICL through its subsidiaries, accounts for: 35% of world bromine production as well as 11% of world potash production and 13% of international potash trade (excluding the cross-border trade between the United States and Canada).

ICL’s public listing finally went through in 1992, as the Israeli government placed some 25 percent of the company on the Tel Aviv Stock Exchange. Control of the company and its decisions remained with the Israeli government, which considered ICL of vital interest to the Israeli state. At the same time, however, the government floated two ICL subsidiaries, Dead Sea Works and Fertilizers & Chemicals Ltd. Both remained, however, majority controlled by ICL.

In 1994, the Israeli government announced its intention to float an additional 25 percent of ICL’s shares, reducing its holding to below 50 percent. The government also proposed to list ICL’s shares on the New York Stock Exchange but dropped that plan before the public offering in February 1995. The new offering turned over nearly 25 percent of the company to investment firm Israel Corporation, headed by Saul Eisenberg, which was also granted an option to acquire an additional 17 percent of ICL by 1997.

Israel Corporation exercised its option to acquire a further stake in ICL, increasing its holding to 41.9 percent. The Israeli government, which by then had reduced its stake in ICL to just 31.5 percent, at last completed the privatization of the company in 1999 when it placed its entire holding in the company on the Tel Aviv Stock Exchange. Israel Corporation took that opportunity to increase its own holding in ICL to 52 percent–beating out Canadian rival Potash Corporation of Saskatchewan (PCS), which had been pursuing its international expansion at the end of the 1990s.

Exit / Outcome: Today, Israel Chemicals is valued at some $15 billion on the Tel Aviv Stock Exchange.

Koor Industries

Principal Partners of Israel Venture Partners were originally involved as Book Running Lead Managers  in raising capital for, and listing Koor Industries, (one of the most prominent holding companies in Israel) on the New York Stock Exchange.

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Principal Partners of Israel Venture Partners were originally involved as Book Running Lead Managers in raising capital for, and listing Koor Industries, (one of the most prominent holding companies in Israel) on the New York Stock Exchange.

Koor Industries of IDB Group is one of the most prominent holding companies in Israel, investing in companies operating in a range of business segments. Koor generally invests in companies which operate in the global market and/or international companies and focuses on large-scale investments. Koor examines and invests in companies in which it has a position of control following the investment, as well as in companies in which Koor does not have a position of control following its investment.This, inter alia, in view of the market conditions and opportunities open in them, due to the decline in the market values of large international companies as a result of the economic crisis in the markets.

Koor actively invests in agrochemicals through Makhteshim Agan Industries; in Finance through Credit Suisse; in telecommunications and technology through its holdings in Microwave Networks; in asset management through Epsilon Investment House; and in venture capital through Koor Corporate Venture Capital.

Koor’s portfolio companies’ strategy is to offer products and solutions that are best of breed, capturing international markets through innovation, quality and service.

Koor’s primary shareholder is the IDB Group which holds 67.33% – 83% through Discount Investment Corporation and 13.5% through IDB Development Corporation. Koor’s ordinary shares are traded on the Tel Aviv Stock Exchange (TASE: KOR).

Makhteshim Agan Industries (voting rights 60% ChemChina ; 40% Koor) is the world’s leading generic manufacturer and distributor of agrochemical crop protection products. The group ranks amongst the world’s largest manufacturers of crop protection chemicals, with a wide range of advanced, environmentally-friendly products. Makhteshim Agan sells its crop protection products in over 100 countries.

Neto M.E. Holdings

Senior Partners of IVP were engaged by Neto M.E. Holdings to organize the restructuring and spin out of this subsidiary operation, prepare prospectus  and offering materials, and prepare the company for its public market listing.

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Senior Partners of IVP were engaged by Neto M.E. Holdings to organize the restructuring and spin out of this subsidiary operation, prepare prospectus and offering materials, and prepare the company for its public market listing.

Neto ME Holdings Ltd is an Israel-based company active in the food industry. The Company operates in the kosher food sector, as an importer, producer and distributor under various categories with brands such as: TibonVeal, beef and poultry products; Williger, canned products; Delidag, fish and fish products; Three Bakers, frozen baked products, and Magic, which produces ready meals. In addition, it operates such lines of products as: import and distribution of cheeses from Western European countries and of selected dairy producers in Israel; distribution of chilled salad products made by Salatei Mahsany and marketing and distribution of fresh fruits and vegetables, through Bickurei Hasade Darom. In addition it exports fish products, ethnic and pastry products and liquorices, among others. The products are distributed through a logistics center, and by a fleet of 150 trucks.

Exit / Outcome: The company today trades successfully on the Tel Aviv Stock Exchange, on a market value of some $150 million US dollars.

Marvel Technology

Craig Marshak, senior Partner of IVP,  advised on an initial equity private placement for Galileo Technologies in 1996; subsequent to that Galileo Technologies was acquired by Marvel, for 25% of the fully diluted share capital of Marvel Technology Group.

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Craig Marshak, senior Partner of IVP, advised on an initial equity private placement for Galileo Technologies in 1996; subsequent to that Galileo Technologies was acquired by Marvel, for 25% of the fully diluted share capital of Marvel Technology Group. Marvell® Technology Group Ltd. (Marvell) (NASDAQ: MRVL), a technology leader in the development of extreme broadband DSP-based mixed-signal integrated circuits for communications signal processing markets, announced that it has completed the acquisition of Israel-based Galileo Technology Ltd. (Galileo). In connection with the acquisition, Marvell will issue approximately 29.1 million shares of its common stock to Galileo shareholders, which represents approximately 25% of the outstanding shares of Marvell common stock after the merger on a fully diluted basis

Galileo, a market leader in communications systems on silicon, is one of the semiconductor industry’s fastest growing suppliers of complex, high-performance, integrated circuit devices serving the needs of the LAN, MAN and WAN markets. Galileo is now a wholly-owned subsidiary of Marvell Technology Group Ltd. and will continue operations in Manof, Israel and San Jose, Calif. With Marvell and Galileo’s technology leadership, the combined company is now positioned to provide a complete end-to-end solution for building networked communications systems. The merger also positions Marvell for significantly broader market opportunities in areas such as 10 Gigabit Ethernet, wireless and terabit-class communication solutions.

Exit / Outcome: Following the equity private placement, Galileo Technologies was ultimately sold to Marvell Technology Group in a transaction valued at approximately $2 billion. With Marvell today valued at about $5 billion at around $10.00 per share, the 25% stake would be valued at around $1 billion.

Checkpoint Software

Senior Partners of IVP were involved in advising on the Initial Public Offering of Checkpoint Software, jointly with Goldman Sachs in 1996.

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Senior Partners of IVP were involved in advising on the Initial Public Offering of Checkpoint Software, jointly with Goldman Sachs in 1996.

Check Point was established in Ramat-Gan, Israel in 1993, by Gil Shwed (Chairman andCEO as of 2012), Marius Nacht (Vice Chairman as of 2012) and Shlomo Kramer (who left Check Point in 2003). Shwed had the initial idea for the company’s core technology known as stateful inspection, which became the foundation for the company’s first product, FireWall-1; soon afterwards they also developed one of the world’s first VPN products, VPN-1. Shwed developed the idea while serving in the Israel Defense Forces, where he worked on securing classified networks.

Initial funding of US$400,000 was provided by venture capital fund BRM Group. In 1994 Check Point signed an OEM agreement with Sun Microsystems,[2] followed by a distribution agreement with HP in 1995. The same year, the U.S. head office was established in Redwood City, California. By February 1996 the company was named worldwide firewall market leader by IDC, with a market share of 40 percent. In June 1996 Check Point raised $67 million from its initial public offering on NASDAQ.

Exit / Outcome: On a split adjusted basis, Checkpoint Software share price has increased from approximately $3.00 in July, 1996 to approximately $45.00 today, more then a fourteen fold increase, and today the company boasts a stock market equity valuation of some $9 billion dollars.

888 Holdings

The company was originally created as Random Logic, headquartered in Tel Aviv, Israel.  Principals of Israel Venture Partners were involved in early stage corporate finance advisory assignments for the company prior to its IPO, in its early formative years.

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The company was originally created as Random Logic, headquartered in Tel Aviv, Israel. Principals of Israel Venture Partners were involved in early stage corporate finance advisory assignments for the company prior to its IPO, in its early formative years.
888 Holdings plc (LSE: 888) is a company which operates several high-profile gamblingwebsites. It was founded in 1997 and is a constituent of the FTSE 250 Index.
It has an operating subsidiary, Cassava Enterprises, which is incorporated and operates under the laws of Gibraltar.

Brothers Avi and Aaron Shaked owned approximately fifty percent of the parent-company through family trusts. Another pair of brothers, Shay and Ron Ben-Yitzhak, control approximately eleven percent through a family trust.

The business was founded by Avi and Aaron Shaked and Shay and Ron Ben-Yitzhak in May 1997 as Virtual Holdings Limited. Casino-on-Net was launched at that time and an administrative centre was established in Antigua. In 2002 Reef Club Casino and Pacific Poker were launched. In 2003 its administrative center was moved to Gibraltar. 888 Holdings was first listed on the London Stock Exchange in 2005, at a market cap of approximately $1 billion.

Exit / Outcome: Revenues of the company range between $300 mm to $400 mm and the equity market cap of the company on the London Stock Exchange is around $750 million (approx £500 mm sterling).

Oramir

Oramir Semiconductor Equipment Ltd. is developing and marketing laser processing solutions for the semiconductor industry.

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Oramir Semiconductor Equipment Ltd. is developing and marketing laser processing solutions for the semiconductor industry. Applications range from photoresist removal in a single dry step, wafer cleaning, annealing and image enhancement. Oramir’s LS705 full wafer processing tool has been successfully tested by a consortium of European manufacturers under the SEA framework. The company has recently collaborated with a major industrial partner to develop the Bee, a state-of-the-art apparatus designed to selectively remove particle contaminants from wafers and photo masks.

In June 2001, Oramir Semiconductor Equipment Ltd. was acquired by Applied Materials Inc. (NASDAQ: AMAT).