US telecommunications firm At&T has purchased 15% of the shares in Israeli startup DriveNets from the present shareholders – amongst them enterprise capital companies 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 traders, who’ve waited an entire decade for such a chance in an organization that’s apparently nonetheless a good distance from an IPO or a sale. So far, DriveNets, which employs some 500 folks, has raised virtually $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 palms with out the corporate itself receiving any money. The present deal apparently signifies AT&T’s need to return in as a strategic associate of the corporate, and the will of the present traders to make at the very least a partial exit.
DriveNets has developed communications routers primarily based on chips cheaper than these of Nvidia, facilitating information switch and AI processing at a excessive stage 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.
