Fidelity exits most of NextVision stake for $425M, sending shares lower

What's the deal? FidelityDealroom has a profile for this one. Try Dealroom → sold the majority of its stake in Israeli drone-camera maker NextVision on Monday in an off-exchange transaction worth US$332.6M, sending the stock sharply lower on the Tel Aviv Stock Exchange.

By the numbers: Fidelity invested roughly $280 million across two tranches in March and July 2025, building a 9.5% position. It sold shares representing 5.5% of NextVision's capital, cutting its stake to about 4%. Including its remaining holdings, the total profit is estimated at about $150 million.

Why it rattled investors: Foreign institutions like Fidelity are seen as long-term holders, making a full-block exit just over a year after buying highly unusual. "I cannot recall a case in which one of them cashed out of a position just a year after acquiring it," a senior executive at a major foreign investment firm told Calcalist. "This is a bad sign for NextVision, and perhaps for the industry as a whole."

The explanation: Sources close to the matter said a change in policy at the specific Fidelity fund forced it to sell positions in several companies, including NextVision. One institutional investor was skeptical: "It's a strange explanation for a strange transaction. After all, the shares weren't sold gradually over six months; they were sold all at once."

The counterpoint: The same executive noted that foreign investors buying a large portion of the shares is a positive sign. But he argued NextVision must broaden its growth beyond its niche. "It should have made an acquisition long ago to diversify its revenue streams. It's like someone who found an oil well in their backyard but still needs to develop it."

What's the endgame? NextVision reported second-quarter revenue of $88 million and profit of $53.5 million, and raised its annual revenue forecast to $335 million. The company, chaired by Chen Golan, has surged by meeting a specific customer need but faces questions about diversifying its revenue.

The signal: A marquee foreign investor's abrupt exit can shake confidence as quickly as its arrival built it — even for a profitable, fast-growing company.

Read more: calcalistech.com