Israeli defense firm Elbit Systems announced today that it reached an agreement with the Government for the acquisition of state-owned rival Israel Military Industries IMI Systems for $522 million.
The deal still requires approval from the Israel Antitrust Authority.
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Elbit was the last remaining bidder among five that had shown interest in the tender to privatize IMI. Israel Military Industries is well known as the developer of Uzi submachine gun.
Elbit will pay approximately $495 million (NIS 1.8 billion), with an additional payment of approximately $27 million (NIS 100 million) upon IMI meeting certain performance goals.
Completion of the deal would make Elbit country’s biggest defense contractor.
“IMI Systems capabilities and technologies are synergetic to Elbit Systems, making this acquisition significant to our long-term growth strategy,” said Bezhalel (Butzi) Machlis, Elbit’s President & CEO. “We look forward to completing the transaction, which will enable us to offer an enhanced portfolio to both the Israeli and global markets. Elbit Systems has a proven track record of successfully performing major acquisitions, and we are confident that this acquisition will be beneficial for Israel’s economy as well as for both companies’ employees and customers.”
Elbit Systems to acquire Israel Military Industry (IMI) for $523 million
