Fortissimo Capital Files Rare Lawsuit Against Businessman Ronen Elad
Fortissimo Capital has filed a lawsuit in the Tel Aviv District Court to cancel a 10.5 million shekel stock deal with businessman Ronen Elad, citing fundamental contract breaches.
Fortissimo Capital, one of Israel's prominent private equity firms, has initiated a rare legal battle against businessman Ronen Elad. The fund, led by Yuval Cohen, has asked the Tel Aviv District Court to cancel a 10.5 million shekel stock deal and return shares sold to Elad.
The Dispute Over Gvanim Shares
The dispute centers around Gvanim Technologies and Engineering, a private company where Elad's EAK Investments is the primary shareholder. In July 2025, EAK signed an agreement to acquire 143 shares in Gvanim from two Fortissimo funds—representing about 12.5% of the company—for 10.5 million shekels. According to the agreement, 6 million shekels were to be paid at signing, with the remaining 4.5 million split into three installments of 1.5 million each over 120-day intervals. Elad signed on behalf of the buyer and provided a personal guarantee.
Fortissimo claims these timelines were breached, citing numerous payment delays and partial transfers. Although 2 million shekels were transferred in December 2025, the fund argued it was done late and deviated from the agreed mechanism. Last June, Fortissimo announced the cancellation of the agreement due to what it termed a fundamental breach.
Roots of the Partnership
The partnership between the parties dates back to 2021, when Elad acquired controlling stakes in Synergy Cables from Fortissimo through Gvanim. As part of that deal, Fortissimo received a 12.5% stake in Gvanim, valued at roughly 20 million shekels at the time. Synergy Cables manufactures power cables and operates near Sderot, while Gvanim distributes electronic components to thousands of clients across defense, medical, cleantech, and hi-tech sectors.
The 2025 transaction was intended to finalize the separation between the parties. Elad agreed to pay 10.5 million shekels for Fortissimo's holdings in Gvanim, in exchange for the fund waiving any claims related to the 2021 Synergy agreement, including indemnity demands. Fortissimo argues it transferred all 143 shares, and EAK is currently listed as holding 893 out of 1,143 Gvanim shares, while full payment remains outstanding.
"Fortissimo Capital is seeking to cancel the stock purchase agreement and restore the pre-transaction status after severe payment breaches by the buyer.
Elad currently serves as chairman of the publicly traded drone company Aerodrome and holds about 28% of its shares. His business dealings recently drew scrutiny following investigative reports regarding his management history.
