ION Private Equity Acquires Control of Arasal from Ze'ev Dagani for NIS 108 Million

ION Private Equity (IPE), a hedge fund managing nearly NIS 10 billion in assets, is acquiring full control of Arasal Electronics by purchasing the 50.29% stake held by majority owner Ze'ev Dagani. The deal values Arasal at approximately NIS 108 million. Payment terms include NIS 5 million at signing, NIS 45 million within one month, and up to NIS 4 million following the publication of Arasal's 2026 financial results.

Arasal Electronics develops, manufactures, and markets electronic systems for civilian and defense applications. Despite the company's recent financial improvement, posting a NIS 6 million profit in 2025 compared to a NIS 1.5 million loss in 2024, its stock has declined 23% over the past year, underperforming the Tel Aviv Industry Index, which rose 50.5% during the same period. The shares currently trade at a price-to-earnings ratio of about 4, reflecting market skepticism about sustaining profitability.

This acquisition follows previous unsuccessful attempts by the Dagani family to sell their controlling interest, including a non-binding memorandum of understanding signed in June 2024 and another sale effort in March 2025 that did not materialize. Following the announcement, Arasal's stock price rose more than 15% on the day of the deal.

The transaction marks a significant ownership change for Arasal, with ION Private Equity expanding its portfolio through this strategic purchase in the electronics sector.