Yavne-based UAV company Aeronautics Ltd. (TASE:ARCS) today announced that it had recently completed the acquisition of US company Chassis Plans for $6 million, following a year of negotiations.
Chassis Plans develops, manufactures, and integrates control and operations stations for unmanned systems, and equipment and computer systems for military and industrial applications. Aeronautics' announcement to the Tel Aviv Stock Exchange (TASE) stated that the two companies' business was synergetic, and that Aeronautics planned to use the acquired company to expand its presence and sales in the US market.
Aeronautics says that one of its considerations in acquiring the US company is the new US defense aid agreement signed last year, under which Israel will receive $3.8 billion in military aid a year for 10 years - a total of $38 billion.
At the same time, in contrast to the preceding defense aid agreement, starting in the middle of the next decade, the Israeli Ministry of Defense will be unable to convert the annual aid money from dollars to shekels for use in procurement from the defense industries in Israel.
Aeronautics CEO Amos Matan told "Globes," "The acquisition of Chassis Plans is part of the trend resulting from the new memorandum of understanding, so that we can operate in the US and get combined orders from both Israel and US customers. This will be a operative platform for carrying out ventures funded with US aid money."
Matan added that Aeronautics planned to utilize its global marketing and sales infrastructure for the acquired company's products, and also to expand Chassis Plans' activity. Aeronautics also said that it did not anticipate any need for substantial capital investments in order to strengthen Chassis Plans' capabilities.
Published by Globes [online], Israel Business News - www.globes-online.com - on September 24, 2017
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