After the exit: Entitle moved its intellectual property out of Israel for 124 million shekels
Startup Entitle sold its intellectual property to its parent company BeyondTrust for 124 million shekels. The company is expected to pay approximately 29 million shekels in taxes on the transfer.
The startup Entitle has sold its intellectual property, a cloud permission management system, to its American parent company BeyondTrust for 124 million shekels. It is expected to pay a tax of approximately 29 million shekels (23%) on the removal of patents, rights, and goodwill from Israel, before various offsets. This is according to documents submitted by the company to the court.
The sale of the intellectual property is the second stage following the exit: the sale of all Entitle shares in April 2024 to BeyondTrust for 85 million dollars (about 320 million shekels at the exchange rate at the time). Taxation at that stage was on the shareholders themselves and amounted, before offsets, to between 23% and 25% on the capital gain generated for the holder, depending on whether the holding was by an individual or a company.
In December 2025, another stage of the deal arrived: the removal of all intellectual property from Israel, with the local branch remaining only as an R&D center entitled to a 6% margin on costs. The consideration for the deal was set at 39 million dollars, which is about 124 million shekels according to the dollar exchange rate on the day of the deal. This deal is theoretically subject to a corporate tax payment of 23%, which amounts to about 29 million shekels. This is not a final amount, as the company is entitled to offset, for example, accumulated losses.
According to the documents, BeyondTrust's payment to Entitle for the intellectual property was in exchange for a promissory note and not in cash. At the same time, against the promissory note, the Israeli company provided the American company with the same amount as a loan, in exchange for an interest rate of 7.3%. At this stage, it is unclear whether the structure of the deal is part of tax planning.
Entitle was founded in 2021 by Ron Nissim, the company's CEO, and Avi Zatser, CTO, who met during their military service in Unit 8200. The company developed a solution for access management systems for software and cloud infrastructure, offering a response to procedures that were previously handled manually. The system makes the process of requesting and granting access to organizational resources automatic, enabling fast and secure access.
BeyondTrust was founded in 2006 and in 2009 was acquired by Symark. In 2014, the investment fund Veritas acquired the company for about 310 million dollars, and in 2018 sold it to the software company Bomgar, which adopted the name BeyondTrust. The purchaser employs over 1,500 employees.
