Israel News

Defense synergy: Israel’s Elbit buys state-owned rival IMI

Elbit completes purchase of Israel’s IMI after government approval.

By Reuters and The Algemeiner

Israeli defense contractor Elbit Systems said on Sunday it completed a $500 million deal to buy state-owned rival IMI Systems (formerly Israel Military Industries) after receiving government approval for the privatization of IMI last week.

Elbit paid $495 million for IMI, with an additional payment of $27 million contingent on IMI meeting agreed performance goals.

“The synergy between the capabilities of the two companies … will enable us to offer an enhanced portfolio and to realize the potential of the technologies of IMI in the international arena, making this acquisition significant to our long-term growth strategy,” Elbit CEO Bezhalel Machlis said.

As part of the deal, some of IMI’s operations will be moved, paving the way for more than 30,000 housing units to be built.

The government announced in 2013 its intention to privatize IMI, a manufacturer of military systems best known for being an early maker of the Uzi submachine gun. Elbit was the last remaining bidder among five that had shown interest.

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Atara Beck
Tags: Israeli defense

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