Exit reflects 23x return on Elron's initial investment
TEL AVIV, Israel
, Nov. 20, 2024 /PRNewswire/ -- Elron Ventures (TASE: ELRN), a global cybersecurity and B2B software investment company, announced today a secondary sale of its shares in cyber portfolio company IronScales. PSG Equity (PSG) acquired the shares at a company valuation of approximately $340 million, reflecting a 23x return on Elron's original investment, which was made together with Rafael Development Corporation (RDC). The IronScales secondary transaction coincides with the recent acquisition of Cybersixgill by BitSight, a global leader in cyber risk management. The Cybersixgill exit is expected to generate $22.5 million in proceeds for Elron.
The sale of the IronScales holdings is the second exit since Arieli Group's acquisition of a majority stake in Elron in September 2024. IronScales, a leading provider of email security solutions, developed an AI-powered automated platform for detecting and preventing phishing attacks. IronScales was the first cyber company in Elron's portfolio and Elron led IronScales' initial funding round in 2016 alongside RDC. The current expected proceeds from the secondary transaction are estimated at $26 million. In 2020 and 2021, Elron realized part of its investment in IronScales, yielding a return of $12.3 million. Following this secondary sale, the cumulative proceeds from IronScales exits amount to approximately $38 million.
Elron, together with leading global defense company and long-standing partner, Rafael Advanced Defense Systems, has established itself as a leading investor in cybersecurity and B2B software with a history of 17 exits that have a cumulative value of over $2.6 billion. The acquisition of IronScales is the latest in a long list of successful exits in recent years, including Cybersixgill, CartiHeal, Given Imaging, Cloudyn, Secdo, Jordan Valley, Canonic Security, Secured Touch, Alcide, and others. Elron's portfolio includes both mature and promising early-stage companies across the cybersecurity and defense, B2B software, and health-tech sectors.
Lisya Bahar Manoah, Managing Partner at Arieli Group and Chairperson of the Board of Elron: "On the heels of the recent Cybersixgill acquisition, we are excited to announce another exit. Following Elron's seed investment in IronScales, we identified an opportunity to exit at a valuation that made sense for the company and our shareholders. With our sale to PSG, we know the company remains in good hands."
Yaron Elad, CEO of Elron Ventures: "The Cybersixgill and IronScales exits illustrate the value inherent in Elron's cyber portfolio. It was an honor for Elron to be the first investor in Ironscales founder, Eyal Benishti, at the beginning Ironscales journey."
About Elron Ventures
Elron Ventures (Elron), a global cybersecurity andB2B software investment company, is committed to turning promising ideas into global industry leaders, with a strong track record of investments and successful M&As worldwide. Elron's holdings include a 50% stake in Rafael Development Corporation (RDC), a joint venture with Rafael Advanced Defense Systems (Rafael), a leading global defense company. This partnership offers founders the unique opportunity to develop and test their technologies alongside top IT and cyber professionals. Elron's portfolio includes: IronScales, Sayata, Red Access and Scribe Security. For further information, please visit: www.elronventures.com.
Forward-Looking Statements
This release contains forward-looking information about Elron Ventures ("Elron") which involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Accordingly, any statements included in this communication are not statements of historical facts but may be deemed to be forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements are, in some cases, accompanied by words such as "may," "should," "would," "could," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "seem," "seek," "continue," "future," "will," "expect," "outlook" or other similar words, phrases or expressions and the negatives of such words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding Elron's expectations of future events, future opportunities, global expansion and other growth initiatives and Elron's investments in such initiatives. These statements are based on various assumptions and known or unknown risks, uncertainties and other factors, and actual results may differ materially. Neither Elron nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Elron assumes no obligation to update any forward-looking statements or information contained in this communication except to the extent required by law.
Media Relations:
Maya Reitman
Head of Marketing, Elron Ventures
mayar@elron.com
+972 (3) 6075555
Investor Relations:
Lisya Bahar-Manoah
Managing Partner, Arieli Group & Chairperson of the Board, Elron Ventures
lisya@arielifamilyoffice.com
+972 (3) 6075555
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SOURCE Elron Ventures
