Sky fund explores sale of control in iDigital

The Sky fund is exploring the sale of its controlling stake in Icon Group, the parent company of the iDigital retail chain and the official distributor and importer of Apple products in Israel. Calcalist has learned that Sky managers, Zvi Yochman and Nir Dagan, have held meetings in recent weeks with several parties interested in acquiring control.

The lifespan of an investment fund is 7 years on average, after which it has an additional period to realize its investments to return money to investors. Sky, which holds 42.5% of the company's shares worth 186 million shekels, has begun to examine the exit from the investment. In the meetings, Sky quoted a valuation of more than half a billion shekels for the company, which is traded at a value of 437 million shekels on the Tel Aviv Stock Exchange. This follows a 55% jump since the beginning of the year, against the backdrop of improved results and profits.

Icon Group operates in two areas. The first is retail and distribution, where it engages in the marketing and sale of Apple devices, mobile phones, computers, watches, and more, in the company's iDigital store chain. The second area, which accounts for 75% of sales, is the import and distribution of Apple products, computing and software, communications, cloud solutions, and information security, alongside related equipment from other brands such as Lenovo, Asus, IBM, Check Point, and more. This activity is carried out through a network of dealers for the Israeli market.

Last week, Icon Group, managed by Doron Sela, published its reports for the first half of 2026, which showed a net profit of 22.4 million shekels, a jump of 78.5% compared to the previous half-year (12.5 million shekels). The increase in profit is the result of a 20.6% increase in revenue to 860 million shekels, compared to 712 million in the corresponding period in 2025, despite the Iron Swords operation which caused sparse traffic in the company's stores in March-June. The decline in the dollar exchange rate also hurt distribution revenues by 114 million shekels.

The increase in the group's revenue was mainly due to an increase in sales of computers and peripheral equipment, and an increase in demand due to the growing use of AI applications, which require the end consumer to upgrade their computing systems to meet increased processing requirements. Thus, more advanced processors, computers with increased memory, and powerful graphics cards were purchased. Gross profit margins rose to 10.7%, compared to 10% of sales in the previous half-year, operating profit accounted for 4% of revenue, compared to 3.1% in the previous half-year, and the net profit rate jumped from 1.8% to 2.6% of sales. The EBITDA stood at 90 million shekels, so the fund is seeking a multiple of 6-7 on EBITDA.

Sky acquired control of Icon in 2017 at a valuation of 110 million shekels. Poalim Equity acquired 20% of the company's shares in 2020 for 70 million shekels. Icon Group went public at a valuation of 775 million shekels in 2021, but in March 2022, after KSP became an official Apple importer, the company lost a large customer and gained a powerful competitor, causing a 30% drop in stock. The recovery to the current value of 437 million shekels came against the backdrop of a new strategic plan led by CEO Doron Sela, the entry of AI, and the increase in sales.

Among the interested parties who met with Sky heads were the trading company "Banda" and the electrical appliance importers Brimag and Yashpar, as well as a party that tried to organize institutional bodies into a purchasing group. The talks did not progress to negotiations, but in the coming weeks and months, more serious contacts are expected to develop for the acquisition of control.