Cellcom Explores Acquisition of Apple Importer Icon Group

Cellcom, controlled by the Fortissimo fund, is in preliminary discussions to acquire a controlling stake in Icon Group, the operator of the iDigital retail chain and the official importer and distributor of Apple products in Israel. The negotiations are being led by Cellcom CEO Eli Adadi. The investment fund Sky, managed by Zvi Yochman and Nir Dagan, holds approximately 42.5% of Icon Group and is seeking a valuation of around 500 million shekels for the company. This valuation represents a premium of over 30% compared to Icon Group's current market capitalization of about 370 million shekels on the Tel Aviv Stock Exchange. Sky's stake is currently valued at around 160 million shekels, and the fund is seeking about 210 million shekels for it. No binding agreements have been reached, and the deal's completion is uncertain.

For Cellcom, this move is seen as a natural progression. Through its subsidiary Dynamica, which operates about 60 stores nationwide and primarily sells Apple and Samsung devices, Cellcom already possesses the largest end-device sales operation among Israeli cellular companies. Dynamica, which generated approximately 72 million shekels in profit in 2025, is a significant profit driver for the group. Acquiring Icon Group would not only add another retail chain but also Icon's import and distribution operations for Apple products to other retailers and distributors. This integration could enhance the group's purchasing power and lead to savings in procurement, inventory, and logistics. However, as both are major players in the market, the transaction would require approval from the Competition Authority.

In 2025, Icon Group's revenues totaled about 1.62 billion shekels, with a net profit of approximately 41 million shekels, up from about 36 million shekels the previous year. The majority of revenue, around 1.13 billion shekels, came from distribution to external clients, while retail accounted for about 487 million shekels. In the first half of 2026, revenues surged by approximately 21% to 860 million shekels, and net profit jumped by about 79% to 22.4 million shekels, despite a dip in store traffic during March-June due to Operation "Iron Arrow."

Icon Group went public in late 2021 at a pre-money valuation of about 775 million shekels. Since then, it has faced increasing competition, partly due to Apple revoking its exclusivity and granting official importer status to KSP. Sky acquired its controlling stake in Icon Group in 2017 for 110 million shekels and began exploring its sale in August. Other potential buyers who met with Sky's management included Magnetic, Brimag, and Yeshupar, but those discussions did not progress to substantive negotiations. Poalim Equity (around 17%) and Pitango Partners (around 16.6%) are also significant shareholders in Icon Group.

Cellcom, with a market value of about 5.7 billion shekels, has reported 11 consecutive quarters of profit growth. In the second quarter of 2026, the company earned 92 million shekels, a 44% increase from the same period last year, marking its highest quarterly profit in 11 years. Net profit for the first half of the year reached 164 million shekels, compared to 124 million shekels in the prior year. Free cash flow was 251 million shekels, and net financial debt decreased to about 1.1 billion shekels.