Elron sells Alcid and will post a profit of $ 11.5 million – the capital market

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(61.06%), which invests in medical equipment, cyber and software companies, announces that the holding company Alcid has signed an agreement to sell the entire shares to Rapid7. The company’s share in the sale will be approximately $ 12 million, and it is expected to post a profit of approximately $ 11.5 million in respect of the transaction.

Elron owned about 24% of the developer Alcid and provides a security platform for cobranitis from development stages to a runtime environment. Under the transaction, Elron will receive approximately $ 12 million from the proceeds of the transaction, of which approximately $ 1.3 million will be deposited in trust for a period of 18 months, in order to secure certain indemnification obligations of the sellers in the transaction towards the buyer.

The company owns about 25 portfolio companies, most in the field of enterprise software and cyber, and some in the field of medical devices. This, after in recent years, the company changed focus and shifted the weight of the investment to cyber companies at the beginning of their journey, through investment in the Seed phase (initial recruitment) or in the first round of recruitment.

Yaron Elad, CEO of the company: “We were privileged to work with a talented team at Alcid, and together with our partners from Intel, to help it formulate a product that caters to a hungry market and take advantage of opportunities. In the field of cyber and software, an area in which we have invested about $ 60 million so far, with the exits so far already having recouped most of the investment (over $ 50 million in the last four years). “The proceeds from the sale will help us continue to invest in our growing portfolio companies and in new investments in the cyber and software field.”

In an interview with BizPortal About three months ago, Elad explained the strategic change the company has entered into in recent years, and why they chose to abandon the field of medical devices in favor of the glittering cyber. “The medical device companies are good, but the investment in them is very long and as a public company to the capital market it is very difficult to digest this process.