Digital recording solutions developer NICE Systems (Nasdaq:NICE), today announced that it has reached a definitive agreement with ELTA Systems Ltd. to sell the assets of its COMINT/DF military-related business to ELTA Systems Ltd for $4 million in cash. These assets include the intellectual property, fixed assets, inventory, and contracts related to NICE's COMINT/DF product line, which includes high performance spectral surveillance and direction finding systems that detect, identify, locate, monitor and record transmission sources.
ELTA is a subsidiary of Israel Aircraft Industries Ltd. (IAI).
Revenue for the first 9 months of 2003 for the COMINT/DF business totaled approximately $5 million. The COMINT/DF business will be treated as a discontinued operation on NICE's financial statements until closing, which is expected in early 2004.
"The COMINT/DF business has excellent technology, but the military business is not a major focus for NICE. We believe that our shareholders will be better served by divesting these assets and focusing our attention and resources on our core enterprise and security-related businesses," said Haim Shani, president and CEO of NICE. "We also see some potential to expand our relationship with ELTA, and we will be exploring the possibility of collaborating with them on other security opportunities."
"ELTA has traditionally integrated NICE COMINT/DF products into its SIGINT Systems. Integrating NICE technologies into the solutions offered by ELTA," said Israel Livnat, IAI VP and president of ELTA Systems, "will enhance ELTA's position in the international SIGINT market, while offering our increasing customer base cost effective solutions."
Published by Globes [online] - www.globes.co.il - on December 9, 2003