On Sunday, Elbit, which is the defense contractor of Israel, stated that it has closed a deal worth $500 million with the IMI Systems.
The IMI Systems is a state owned rival of Elbit and the company acquired it after the approval by the government last week for the privatization of IMI Systems.
The company, Elbit made a payment of $495 million. An additional payment 0f $27 million was made by the company for the meeting of the agreed performance by the IMI.
The CEO of Elbit, Bezhalel Machlis, stated that the affiliation of the two companies will synergize their capabilities which will enable the Elbit to make the offerings of the enhanced portfolio.
Also, it will enable them to realize the potential of the IMI in the international arena related to technologies and will thereby help this acquisition by the Elbit significant when taken into consideration from a long term growth perspective.
As per the deal which was closed last week, certain operations of the IMI will be moved and they will pave the way for the building of more than 30000 units of housing.
The announcement for the privatization of the IMI Systems was made back in the year 2013 by the government itself.
IMI is a manufacturer of the systems of military which is known best for being a pioneer in the making of the Uzi sub-machine gun.
In the bidding that was the process to acquire IMI, Elbit was the last company that remained in the group of those five companies that had initially shown interest for acquiring the IMI.
After winning the acquisition, which was won by the Elbit at $500 million, the further procedures and other important paper-works were completed later and the deal finaly closed last week.
Source: Reuters, NewYorkTimes