US telecommunications firm At&T has purchased 15% of the shares in Israeli startup DriveNets from the prevailing shareholders – amongst them enterprise capital corporations Pitango and Bessemer Enterprise Companions, Harel, and Poalim Fairness – in one of many largest secondary rounds carried out in Israel.
The worth of the deal is estimated at $750-800 million, giving the community infrastructure firm based by Ido Susan and Hillel Kobrinsky a valuation of $5 billion, which compares with a valuation of $3.1 billion in its final fund elevating spherical of $3.1 billion.
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The deal represents a major first exit for the buyers, who’ve waited an entire decade for such a possibility in an organization that’s apparently nonetheless a good distance from an IPO or a sale. Up to now, DriveNets, which employs some 500 individuals, has raised nearly $600 million (not together with the secondary spherical), in rounds led by Bessemer, Pitango, and US funds D1 Capital Companions and D2 Investments.
A secondary spherical is one during which shares change arms with out the corporate itself receiving any money. The present deal apparently signifies AT&T’s want to come back in as a strategic associate of the corporate, and the will of the prevailing buyers to make at the very least a partial exit.
DriveNets has developed communications routers primarily based on chips cheaper than these of Nvidia, facilitating knowledge switch and AI processing at a excessive degree of reliability aggressive with that of Cisco and of Mellanox, which was acquired by Nvidia.
DriveNets declined to touch upon the report.
Printed by Globes, Israel enterprise information – en.globes.co.il – on October 8, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
