DC Advisory advised SUNCORPORATION on its subsidiary Cellebrite Mobile Synchronization's strategic private placement to Israel Growth Partners

Background

• DC Advisory (DC), together with Daiwa Securities (Daiwa), advised SUNCORPORATION (Sun) on the disposal of a minority stake in Cellebrite Mobile Synchronization (Cellebrite), the developer and vendor of data intelligence solutions, through a capital increase to Israel Growth Partners (IGP)
• Sun is headquartered in Japan, listed on the Tokyo Stock Exchange and is a provider of mobile data solutions, game content development which operates through its two business divisions; IT and entertainment
• Cellebrite, founded in 1999 and headquartered in Petah Tikva, Israel, has been operating as a consolidated subsidiary of Sun and is a global leader in the emerging market of software solutions, AI and analytic tools
• Its products allow law enforcement agencies, government and enterprises to accelerate criminal investigations and address the challenges of crime and security in a digital world
• Cellebrite’s solutions are used by more than 6,000 agencies, in over 150 countries

Process

• To accelerate Cellebrite’s growth strategy, Sun sought a new business partner with a deep knowledge and experience in the sector combined with sufficient funding resources
• Backed by the capital alliance, alongside IGP’s substantial experience in successfully growing Israel-based high-tech companies, Cellebrite can continue on its growth trajectory
• The transaction was conducted through a subscription of newly issued convertible preferred shares in Cellebrite by IGP
• IGP will hold a 24.4% stake after the transaction. The total value of the issued preferred shares amounts to USD 110m

Outcome

• The investment by IGP not only enables the execution of Cellebrite's long-term growth strategy, it also supports its day-to-day operations
• The successful closing of the transaction underlines DC Advisory’s ability to advise on complex cross-border sell-side transactions, and demonstrates DC Advisory’s deep sector knowledge in the global technology industry