Elbit Purchases Azimuth
HAIFA, Israel, Jan. 25, 2010 -- Elbit Systems' wholly owned subsidiary, Elbit Security Systems Ltd., has announced that it has purchased the remaining shares of Azimuth Technologies Ltd. for approximately $46.5 million (173 million shekels). Elbit bought 19 percent of Azimuth's shares in November 2008.
Joseph Ackerman, president and CEO of Elbit Systems, said, "The acquisition of the balance of Azimuth's shares underscores our long-term strategy of growth through mergers and acquisitions of complementary companies with high synergistic value. The acquisition will provide us with added value in the satellite navigation field, and we expect that the combination of the new capabilities alongside our existing ones will further strengthen our position as a global leader in the electro-optics field in Israel and abroad."
Azimuth is an Israeli company engaged mainly in the areas of satellite navigation systems (GPS), electro-optics and data communications for defense, paragovernment and civil applications. The company's systems are designed for target acquisition, fire coordination, navigation and orientation solutions, high-accuracy optical measurement systems, and command and control. Its subsidiary in the UK is engaged in similar activities.
In the event that, before the merger, Azimuth distributes a dividend of approximately $5.4 million (20 million shekels), the above-mentioned consideration will be reduced by approximately $4.3 million (16 million shekels).
Approximately $3.2 million (12 million shekels) will be held in trust to indemnify Elbit in accordance with the terms of the agreement and will be distributed, in whole or in part, to the shareholders at a later date.
The closing of the transaction is subject to approval by Azimuth's shareholders as well as by the Israeli Antitrust Authority.
For more information, visit: www.elbitsystems.com
- 1. The branch of physics that deals with the use of electrical energy to create or manipulate light waves, generally by changing the refractive index of a light-propagating material;
2. Collectively, the devices used to affect the intersection of electrical energy and light.
Compare with optoelectronics.
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