Magal acquires Canadian co Aimetis for $14m

Ishay Davidi

This Israeli security solutions provider is controlled by Ishay Davidi's FIMI Opportunity Funds.

Security solutions provider Magal Security Systems Ltd. (Nasdaq: MAGS), controlled by FIMI Opportunity Funds, is acquiring a Canadian company at an enterprise value of $14 million. Magal announced that it would acquire Ontario-based video camera security software solutions provider Aimetis.

According to the Canadian company's website, its solutions are sold through distributors in over 100 countries around the world. The company also has branches in Brazil, Germany, China, and Dubai. As of the end of 2015, Magal had $30.4 million in cash.

Magal will acquire Aimetis through its fully-owned Senstar subsidiary. "Aimetis's basket of products complements Senstar's basket of products in perimeter defense systems," Magal CEO Saar Koursh said. "The acquisition expands the basket of products by 20%, and diversifies our business. We are entering new fields, such as education, health, and retail. Aimetis is growing rapidly, and we expected the acquisition to contribute to Magal's profit starting in 2017, while there will be no significant effect on our bottom line in 2016."

Magal's market cap is $82 million. The company is active in three fields: perimeter defense systems, perimeter security projects for sensitive installations and special events, and cyber defense. The company made a $3.1 million net profit in 2015, down 7.9%, compared with 2014, on $63.7 million in revenue, down 17.8%, compared with 2014. FIMI, controlled by Ishay Davidi, acquired control of Magal in the summer of 2014 at a company value of $60 million, paying Nathan Kirsh, the previous controlling shareholder, $23 million for his holdings. The share price for the deal was $3.50, compared with the current share price of $5.

Published by Globes [online], Israel business news - www.globes-online.com - on April 3, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Ishay Davidi
Ishay Davidi
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