March 10, 2012
What do Provigent, Telmap, and Anobit have in common?
Two things that I can think of:
1) All of them were purchased by Fortune 500 companies during the past year for prices reported to be in excess of $300 million each. Provigent was bought by Broadcom, Telmap by Intel, and Anobit by Apple Computer.
2) All were clients of D. Kligler IP Services, and we had worked with all of them almost since their inception.
Several more of our clients have made impressive exits over the past few years, but these are the biggest, totaling more than one billion dollars. That’s roughly 20% of the total volume of acquisitions of Israeli companies over the past year, and all clients of one small, three-year-old patent firm.
What do these numbers say about us? We make no claims – The credit belongs to the founders of the companies, all very smart people with the vision to see a market need, the insight to find a creative solution, and the ability to make an ambitious plan and bring their products to market.
On the other hand, to paraphrase a saying, “Tell me who your clients are, and I’ll tell you who you are.” All of these founders understood the importance of protecting their inventions, and demanded high-quality patents to do so. All of the companies were able, with our help, to build up imposing patent portfolios before they were sold. They were aware that in terms of company valuation, few investments give a better return than strong patents.
Are we happy about these acquisitions? Well, yes and no. Our clients deserve all the success they have achieved, but we miss the close involvement and interaction that we had with them when they were small and locally-owned. So if you believe your company could be the next big thing in Israeli high-tech, come to us, but maybe give some thought to an IPO as a way to make your exit, rather than acquisition.