Elbit Systems Ltd. recently said it signed an agreement to acquire all the shares of Soltam Systems Ltd. (“Soltam”), Saymar Ltd. (“Saymar”) and ITL Optronics Ltd. (“ITL”), that are currently held by Mikal Ltd. (“Mikal”) and its subsidiaries.
The signed agreement provides for the acquisition of Mikal’s interests in the above mentioned Mikal subsidiaries, which are synergetic to Elbit Systems, rather than the acquistion of Mikal itself, as was contemplated in Elbit Systems’ prior announcements.
When the acquisition is completed, Elbit Systems will hold a 100 percent interest in Soltam and Saymar, and a 87.85 percent interest in ITL. The balance of ITL’s shares, which are traded on the Tel Aviv Stock Exchange, is held by the public. Simultaneously, Elbit Systems willl sell its existing holdings in Mikal (approximately 19 percent) to the other Mikal shareholders.
The consideration to be paid by Elbit Systems for the acquisition will be approximately $87 million. The consideration to be paid to Elbit Systems for its 19 percent holding in of Mikal’s shares will be $18 million. In addition, the agreement contains a provision for possible future payments to Mikal subject to the acquired subsidiaries achieving certain business goals.
The closing of the transaction is subject to certain approvals that the parties expect to obtain in the near future.
Joseph Ackerman, Elbit Systems’ President and CEO said: “These companies are synergetic to Elbit Systems, and their acquistion will be an important step in executing our long- term growth strategy. The combination of Elbit Systems’ existing capabilities with the technologies of Soltam, Saymar and ITL in platforms, propulsion and electro-optics, will enable us to further enhance our portfolio of solutions to both the Israeli and the global defense market”.