Israel continues to be hot R&D destination

Posted Nov 14th 2007 4:00PM by Aaron Katsman
Filed under: Israel

Today's news that two software giants SAP (NYSE: SAP) and McAfee (NYSE: MFE) are expanding their R&D centers in Israel, points to the continued superiority of Israeli technology. Coupled with news that foreign investment in Israel jumped to $1.25 billion for October -- the biggest number since March -- it shows that international investors are still intrigued by Israeli ingenuity.

SAP increasing its Israeli exposure may be an indication that it may make an acquisition. Retalix (NASDAQ: RTLX) has been mentioned in the past as a potential SAP target. Retalix automates and synchronizes retail, distribution and supply chain operations for stores, headquarters and warehouses, and has made strong inroads into China.

While Israeli Hi-tech M&A has sagged this year, I would look to a revival in early '08.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC and Senior Editor of IsraelNewsletter.com. Author is long RTLX. He holds no position in any other stock mentioned as of 11/14/07.

Tags: Israel, McAfee, mfe, SAP, Technology