Elron Software, a wholly owned subsidiary of Elron Electronic Industries, today signed a agreement to acquire most of the material assets and liabilities of NCC (Network, Communications and Computer Systems) Ltd. for $40 million cash. Another $4 million will be paid at the end of three years of activity, subject to certain conditions.
The activity being acquired will be managed by Elron Software (NCC) Ltd., wholly owned by Elron Software. Meir Alter, founder and controlling shareholder of NCC, will serve as the president of the subsidiary. The deal is expected to be closed in December 1998, and is dependent on the fulfillment of further conditions, including obtaining approvals from third parties and government bodies.
Once the deal is completed, Elron Software will make a one-time write-off of expenses for research and development in progress, estimated at $20 million.
Dr. Ya’akov (Koby) Ben-Zvi, President and CEO of Elron Software Inc., called the agreement "a significant step'' toward implementing Elron's strategy for growing its worldwide presence in the IT market. "The acquisition of N.C.C will strengthen our Internet Product Division," Dr. Ben-Zvi said, "and will enable Elron Software to provide a wide range of Internet/Network Management products."
NCC was founded in 1983, and is considered a leader in the development of software, products, and technologies for managing communications networks, Internet networks, and complex information systems. It customers include companies in the US, Israel, and Europe in the fields of data communications, and telecommunications, and in the financial sector.
Published by Israel's Business Arena on November 3, 1998