Out of the total amount, $117.9 million will be paid in cash at the time of the closing and up to $40 million will be paid as earn-out, subject to the acquired division’s future business performance
NICE’s acquired business will be merged into CYBERBIT LTD., an Elbit Systems subsidiary, recently established, in order to consolidate Elbit Systems’ cyber activities
Elbit Systems Ltd. (NASDAQ and TASE: ESLT), has signed an agreement to acquire NICE Systems Ltd. (NASDAQ and TASE:NICE) 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, subject to certain closing conditions. 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 organizations 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 to place greater focus on the execution of its long-term strategic plan and to focus on its core markets and business model.
“We are proud of the many years of success this division has enjoyed,” said Barak Eilam, CEO of NICE. “As we continue to execute our long-term strategic plan, we have arrived at a juncture where we believe it is in our best interest to divest Intelligence in order to focus on the company’s more synergetic, core businesses.” Eilam continued, “We are pleased to reach this agreement with a market leader such as Elbit Systems, which I am confident will ensure the continued success and growth of this important business, and serve as a good home for the division’s customers and employees.”
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.
Adi Dar, an Executive Vice President of Elbit Systems, was appointed as CYBERBIT’s General Manager. The Nice Cyber and Intelligence division’s employees will become employees of CYBERBIT.
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, said: “The acquisition of NICE’s 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. Machlis added: “We welcome NICE’s 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”.
Elbit Systems Ltd., based in Haifa, Israel, is an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world. The company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (“C4ISR”), unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems and radios. The company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial aviation applications and providing a range of support services, including training and simulation systems.
NICE Systems, based in Ra’anana, Israel, is a worldwide leading provider of software solutions that enable organizations to take the next best action in order to improve customer experience and business results, ensure compliance, fight financial crime, and safeguard people and assets. NICE’s solutions empower organizations to capture, analyze, and apply, in real time, insights from both structured and unstructured Big Data. This data comes from multiple sources, including phone calls, mobile apps, emails, chat, social media, video, and transactions. NICE solutions are used by over 25,000 organizations in more than 150 countries, including over 80 of the Fortune 100 companies.]]>