Photo above: IMI’s Extended Range Artillery Rocket EXTRA
Elbit Systems announced today that it completed the acquisition of IMI Systems (IMI) for a purchase price of approximately $495 million. Additional payment of approximately $27 million is contingent upon IMI meeting agreed performance goals. Bezhalel Machlis, Elbit’s President & CEO,said that Elbit has a proven track record of successfully performing major acquisitions. “This acquisition will be beneficial for Israel’s economy, for both companies’ employees and customers and for our shareholders.”
This is the largest merger in the Israeli defense industry. IMI was established more than 8 decades ago, and manufactures precision munitions, Combat mobility, survivability and protection systems, armor solutions and HLS and Crisis management. Among them, Rockets, Missiles and Active Protection Systems (Iron Fist). It employs approximately 2,000 employees. Annual revenues are more than $500 million.
Following the deal, Elbit reorganize its structure: IMI will join the newly announced Land Division that includes the advanced artillery systems unit (previously Soltam), Kinetics unit which provides Auxiliary Power Units, Air Conditioning and Life Support Systems for tracked and wheeled military vehicles. The deal marks the beginning of intense competition between Elbit and Rafael, who supply its own active protection system called Trophy, to the US Army.
Elbit is a giant defense systems provider with $895.2 million revenues in the third quarter of 2018 and NASDAQ market value of about $5.16 billion. It operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (C4ISR), unmanned aircraft systems, advanced electro-optics, electro-optics, signal intelligence systems, data links and communications systems. It is also the supplier of the F-35 Helmet Mounted Systems (HMS) that pilots to view flight data, sensor and 3D location-based information within direct line-of-sight (LOS).