Elbit Systems has signed an agreement to acquire Nice Systems' cyber and intelligence division for $US157.9 million.
Out of the total amount, $US117.9 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 organisations with tools for creating communication intelligence.
The division’s yearly revenue in 2014 was in the high tens of millions of dollars, according to a company statement.
The Cyber and Intelligence division will be acquired by Cyber Bit Limited, 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' cyber experience and technologies.
Elbit Systems executive vice president, Adi Dar, has been appointed as Cyberbit's general manager.
The Nice Cyber and Intelligence division’s employees will become employees of Cyberbit.
Elbit Systems president and chief executive, Bezhalel (Butzi) Machlis, said the acquisition of Nice's division was a significant milestone in the company's 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," he said.
"The acquisition will enable us to provide our customers with end-to-end, market leading cyber solutions.
Machlis welcomed Nice's Cyber and Intelligence division employees.
"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”.