Elbit to Acquire IMI Systems for $495 million
25 June, 2018
With approximately 2,000 employees and half a billion dollar annual sales, IMI will bring Elbit vast experience in the areas of precision munitions
A major Israeli defense merger is getting one step closer: Elbit Systems Ltd. (NASDAQ: ESLT) has announced today that the agreements reached between Elbit Systems and the Israeli Government for the acquisition of IMI Systems were approved by the Committee for the Tender of the Sale of State Shares and by the Board of Directors of the Company. The purchase price will be approximately $495 million, with an additional payment of approximately $27 million upon IMI meeting certain performance goals.
Completion of the transaction is subject to the signing of the relevant documents and the receipt of the remaining applicable governmental approvals, including the approval of the Head of the Israeli Antitrust Authority. Elbit is engaged in a wide range of defense, homeland security and commercial programs throughout the world. IMI is specializing in the development and manufacturing of combat-proven solutions and technologies for the land, air, naval and cyber for the modern battlefield.
With approximately 2,000 employees and half a billion dollar annual sales, IMI will bring Elbit More than 8 decades of experience in the areas of precision munitions, Combat mobility, survivability and armor solutions. It also includes expertise in certain aspects of battle tanks design and production.
The agreement does not includes the classified unit Tomer. This unit is responsible for the development and production of unique rocket propulsion systems. Tomer’s activity will remain a state-owned independent company, and a suppliers to local defense companies like Rafael and Israel Aerospace Industries.