IAI Elta buys 50% Eltel stake

IAI Photo: Yaakov Saar

IAI said that Elta's acquisition of 50% of Eltel from Malam Team reflected its strategy of entering the IDF maintenance and outsourcing market.

Israel Aerospace Industries (IAI) subsidiary Elta Systems is buying 50% of Eltel from Malam Team for NIS 42 million. Following completion of the deal, Malam Team and Elta will jointly manage Eltel.

Eltel provides instructional, training, integration, and product maintenance services to various institutions, government ministries, and defense companies.

Malam Team, which has NIS 2 billion in revenue in 2018, today notified the Tel Aviv Stock Exchange (TASE) that completion of the deal was not certain. The company said that the deal was contingent on the fulfillment of a number of conditions agreed by the parties, such as obtaining the required regulatory approval. Eltel's revenue totaled NIS 110 million in 2018.

IAI said that Elta's acquisition of 50% of Eltel from Malam Team reflected its strategy of entering the IDF maintenance and outsourcing market, with a focus on technological equipment.

Published by Globes, Israel business news - en.globes.co.il - on March 31, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

IAI Photo: Yaakov Saar
IAI Photo: Yaakov Saar
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