Elbit Systems Closes Acquisition of IMI Systems

The company said on Tuesday it reached an agreement with the Israeli government to buy state-owned IMI Systems for up to $522 million. The deal still requires approval from the Israeli Antitrust Authority

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems (Photo: Meir Azulay)

Elbit Systems announced on Tuesday that the agreements reached with the Israeli Government regarding the acquisition of IMI Systems were approved by the Committee for the Tender of the Sale of State Shares and by Elbit’s Board of Directors of the Company. The purchase price will be approximately $495 million (NIS 1.8 billion), with an additional payment of approximately $27 million (NIS 100 million) contingent 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.

Bezhalel (Butzi) Machlis, Elbit Systems President and CEO, commented: “IMI Systems capabilities and technologies are synergetic to Elbit Systems, making this acquisition significant to our long-term growth strategy. 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.”