Sky Fund Explores Selling Control of Icon Group, Owner of iDigital in Israel

Sky Investment Fund is considering selling its controlling stake in Icon Group, the parent company of the iDigital retail chain and official Apple distributor in Israel. Sky executives, Zvi Yochman and Nir Dagan, have recently met with several interested parties regarding the potential acquisition. Sky currently holds 42.5% of Icon Group shares, valued at 186 million shekels, and is exploring an exit after the fund's typical seven-year investment cycle. The company is valued at 437 million shekels on the Tel Aviv Stock Exchange, with discussions indicating a potential deal value exceeding 500 million shekels.

Icon Group operates in two main sectors: retail and distribution. The retail segment includes sales of Apple devices and other electronics through the iDigital stores, while the distribution segment, which accounts for 75% of sales, involves importing and distributing Apple products, computing, software, cloud solutions, and security equipment from brands like Lenovo, Asus, IBM, and Check Point. The company serves the Israeli market through a network of resellers.

In the first half of 2026, Icon Group reported a net profit of 22.4 million shekels, a 78.5% increase from the previous period, driven by a 20.6% revenue rise to 860 million shekels despite challenges such as reduced store traffic during Operation Guardian of the Walls and a 114 million shekel revenue loss due to a weaker dollar. Growth was fueled by increased sales of computers and hardware, partly due to rising demand linked to AI applications requiring upgraded systems.

Sky acquired control of Icon Group in 2017 for 110 million shekels from Pitango Venture Capital partners. In 2020, Bank Hapoalim's investment arm bought 20% of Icon for 70 million shekels. Icon was once Apple's exclusive distributor in Israel but lost exclusivity when Apple allowed other importers like C-Data and KSP to operate. In 2021, Icon was valued at 775 million shekels at IPO, but in 2022, KSP became an official Apple importer, significantly impacting Icon's business and causing a 30% stock drop. Since then, Icon struggled until a strategic turnaround led by CEO Doron Sela and the AI-driven market growth helped restore its valuation.

Potential buyers who have met with Sky include trading company Benda, electrical importers Rimag and Wispar, and a group attempting to assemble institutional investors for a consortium. While talks have not yet advanced to formal negotiations, more serious discussions are expected in the coming weeks and months, with offers ranging from purchasing Sky's stake to acquiring all Icon shares. Sky has not commented on the matter.