Fortissimo Fund Sues Ronen Elad Over $2.8 Million Stock Deal
The prominent Israeli private equity fund Fortissimo is engaged in a rare legal battle against businessman Ronen Elad, seeking to nullify a NIS 10.5 million (approximately $2.8 million) stock transaction and reclaim the shares. Fortissimo, typically discreet in resolving disputes, has filed a lawsuit with the Tel Aviv District Court.
The dispute centers on a private technology and engineering company called Magavan, in which Elad's company E.A.K. Investments is the main shareholder. In July 2025, E.A.K. signed an agreement to purchase 143 Magavan shares, representing about 12.5% of the company, from two Fortissimo funds for NIS 10.5 million. The payment structure involved NIS 6 million upon signing and NIS 4.5 million in three installments over 120 days, with Elad providing a personal guarantee.
Fortissimo alleges that Elad failed to adhere to the agreed payment schedule, citing a series of reminders, delays, and late or partial payments. A significant payment of NIS 2 million in December 2025 was also reportedly late and deviated from the agreed mechanism. In June, Fortissimo declared the agreement void due to what it termed a "fundamental breach," and a subsequent NIS 1 million payment did not alter the legal situation, according to the fund.
The roots of this partnership trace back to 2021 when Elad acquired control of Synergy Cables through Magavan. As part of that deal, Fortissimo received 12.5% of Magavan's shares, valued then at approximately NIS 20 million, making the fund a partner in the holding company. Synergy Cables, located near Sderot, manufactures and markets power cables. Magavan, founded in 1988, distributes electronic components to various industries, including defense, medical, cleantech, and high-tech.
The 2025 transaction was intended to finalize the separation between Elad and Fortissimo, with Elad agreeing to pay NIS 10.5 million for Fortissimo's stake in Magavan. The agreement also stipulated that upon payment, Fortissimo would relinquish claims related to the 2021 Synergy Cables deal, including indemnification demands. Fortissimo claims it transferred all 143 shares and that E.A.K. is registered as the owner of 893 out of 1,143 Magavan shares, but the payment was not made as agreed. If the court sides with Fortissimo, the partnership they sought to end over a year ago could be revived, leaving the 2021 Synergy deal's accounts unsettled.
Elad, currently chairman of the public drone company Aerodrom, was recently in the news following a report alleging financial misconduct within the EAK group. His former partners claimed that over NIS 9 million was transferred from group companies to entities associated with Elad. Elad reportedly admitted to withdrawals totaling NIS 8 million in a subsequent settlement agreement and agreed to repay funds and buy out his partners.
