Elbit Systems to buy NICE Cyber Division for $158m

Bezhalel (Butzi) Machlis

NICE System's Cyber and Intelligence Division employees will join Elbit System's unit Cyberbit.

Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) announced today that it has signed an agreement to acquire NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) Cyber and Intelligence division for up to $157.9 million, subject to certain customary adjustments. $117.9 million will be paid in cash on completion of the deal, planned for the third quarter of 2015. Up to $40 million will subsequently be paid based on future business performance.

NICEs Cyber and Intelligence division offers solutions which provide law enforcement agencies and intelligence organizations with tools for creating communication intelligence. The divisions yearly revenue in 2014 was in the high tens of millions of dollars.

The Cyber and Intelligence division will be acquired by Elbit Systems subsidiary Cyberbit, which was recently established to consolidate Elbit Systems activities in the Cyber Intelligence and Cyber Security markets. Cyberbit will focus on both the emerging government and commercial cyber markets, leveraging Elbit Systems extensive and proven cyber experience and technologies.

Elbit Systems EVP Adi Dar has been appointed Cyberbit's general manager. Nice Cyber and Intelligence divisions employees will become employees of Cyberbit.

Elbit Systems president and CEO Bezhalel Machlis said, The acquisition of NICEs division is a significant milestone in our strategy to bring Elbit Systems cyber capabilities to the level of global leaders. NICE is a well- known world leader in the cyber intelligence industry, and its business activities and capabilities are complementary to ours. The acquisition will enable us to provide our customers with end-to-end, market leading cyber solutions."

He added, "We welcome NICEs Cyber and Intelligence division employees, known for their cutting edge technological capabilities and operational experience. I believe that our combined technology synergetic forces, backed by on-going investment in the cyber field and the joint market position will lead CYBERBIT to success and a world leading position.

Published by Globes [online], Israel business news - www.globes-online.com - on May 21, 2015

Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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Bezhalel (Butzi) Machlis
Bezhalel (Butzi) Machlis
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