Israeli tech startups were bought out for a record total of $5.5 billion in 2012, according to a report published Monday. The report also suggests a maturity in the Israeli sector with fewer, but larger, deals transacted.

The report by analysts PricewaterhouseCoopers showed 2012 had 50 deals with an average deal size of $111 million, compared with 63 deals with an average size of $81 million in 2011. The report didn't cover IPOs.

According...