In a huge merger in Israel’s real estate industry, property developer Israel Canada (TASE: ISCN) has acquired the activities of Acro Real Estate (TASE: ACRO) at a company valuation of NIS 3.1 billion – a 10% premium on the market price. The acquisition will make Israel Canada the biggest real estate developer in Israel.
As part of the move, which was completed last night, the activity of Acro, currently controlled by businessman Zahi Arbov, will be merged into Israel Canada, in a deal that reflects a valuation of NIS 10 billion for the merged company. Market sources believe that Israel Canada, which is controlled by businessmen Barak Rosen and Asi Touchmair, will pay the NIS 3.1 billion for Acro in a cash (60%) and shares (40%) deal.
Premium on market price but below IPO price
Acro owns 61 projects under construction, including 7,700 housing units, mainly in urban renewal areas, as well as office and commercial developments in which its share is 165,000 square meters. Among other things, Acro is building a project in Tel Aviv called Cosmopolitan, in which it has sold 30,000 square meters of space since the beginning of the year for about NIS 1 billion.
In the past year, Acro’s share price has fallen by more than 25% to a market cap of about NIS 2.8 billion, so the acquisition reflects a 10% premium on the share price in the market. However, 4 years ago, the company’s IPO was held at a higher valuation of NIS 4 billion, after money. Since then, Acro’s share price has fallen by about 30%.
In the third quarter of 2025, the company reported an 84% decline in the number of apartments sold (38 apartments). This is, among other things, due to the massive sale of 150 apartments in the corresponding quarter of 2024 in a government subsidized housing project in Jaffa. However, the price of an average apartment (most of them in Tel Aviv) jumped 50% in the quarter to NIS 4.65 million.
Since the beginning of the year (in the first nine months), Acro has sold 77% fewer apartments than in the corresponding period last year – 84 apartments, at an average price of NIS 4.9 million, 30% higher than the first nine months last year.
Despite the decline in apartment sales, Acro’s revenue in the third quarter fell only 6% to NIS 204 million. Moreover, Acro’s net profit, jumped fivefold in the third quarter to NIS 28 million from the corresponding quarter of 2024.
Published by Globes, Israel business news – en.globes.co.il – on February 19, 2026.
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