Elbit Systems Ltd, headquartered in Haifa Israel has signed an agreement to acquire Nice Systems Ltd.’s Cyber and Intelligence division for a total amount of up to $157.9 million, subject to certain customary adjustments. Out of the total amount, $117.9 million will be paid in cash at the time of the closing, expected to take place in the third quarter of 2015. An additional amount of up to $40 million will be paid as earn-out, based upon the future business performance of the acquired division’s activities.
Nice’s Cyber and Intelligence division offers solutions which provide law enforcement agencies and intelligence organisations with tools for creating communication intelligence. The division’s yearly revenue in 2014 was in the high tens of millions of dollars. This divestiture will allow Nice, headquartered in Ra Anana, Israel, to place greater focus on the execution of its long-term strategic plan and to focus on its core markets and business model.
The Cyber and Intelligence division will be acquired by Cyberbit Ltd, Elbit Systems’ subsidiary, recently established in order to consolidate Elbit Systems’ existing activities relating to 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.