Source: Elbit Systems
Elbit Systems Ltd. (the "Company") (NASDAQ and TASE: ESLT), announced today that it has signed an agreement to acquire NICE Systems Ltd.'s ("NICE") Cyber and Intelligence division for a total amount of up to $157.9 million, subject to certain customary adjustments.
Out of the total amount, $117.9 million will be paid in cash at the time of the closing, expected to take place in the third quarter of 2015, subject to certain closing conditions. An additional amount of up to $40 million will be paid as earn-out, based upon the future business performance of the acquired division's activities.
NICE's Cyber and Intelligence division offers solutions which provide law enforcement agencies and intelligence organizations with tools for creating communication intelligence. The division's yearly revenue in 2014 was in the high tens of millions of dollars.
The Cyber and Intelligence division will be acquired by CYBERBIT LTD ("CYBERBIT"), Elbit Systems' subsidiary, recently established in order to consolidate Elbit Systems' existing activities relating to the Cyber Intelligence and Cyber Security markets. CYBERBIT will focus on both the emerging government and commercial cyber markets, leveraging Elbit Systems extensive and proven cyber experience and technologies.
Adi Dar, an Executive Vice President of Elbit Systems, was appointed as CYBERBIT's General Manager. The Nice Cyber and Intelligence division's employees will become employees of CYBERBIT.
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, said: "The acquisition of NICE's division is a significant milestone in our strategy to bring Elbit Systems cyber capabilities to the level of global leaders. NICE is a well- known world leader in the cyber intelligence industry, and its business activities and capabilities are complementary to ours. The acquisition will enable us to provide our customers with end-to-end, market leading cyber solutions. Machlis added: "We welcome NICE's Cyber and Intelligence division employees, known for their cutting edge technological capabilities and operational experience. I believe that our combined technology synergetic forces, backed by on-going investment in the cyber field and the joint market position will lead CYBERBIT to success and a world leading position".
Contributed | what does this mean?