Ltd. announced today that it has signed an agreement for the acquisition of the assets of Systems (1998) Ltd. for a price of $34 million, subject to accounting adjustments. Final closing of this Transaction is subject to the conclusion of certain conditions including receipt of all legal approvals. Systems specializes in the area of training, simulation and debriefing systems for air, sea and ground forces.
In the pastand Elbit have competed on simulation and training programs in Israel and around the world. In recent years BVR partnered with foreign companies to license and integrate its patented ‘Embedded Virtual ’ system, enabling cost-effective and realistic live training with any type of training aircraft.
In 2008 BVR had an order backlog worth over $50 million, with additional $7 million added in the first months of 2009. In April this year BVR reported a net profit of US$1.5 million, compared to a net loss of four million in 2007. BVR has encountered unique circumstances this year: while achieving profitability and significant growth in orders, the company encountered difficulties in rising new working capital. The acquisition bywill enable to fulfill this potential and provide an access to the customers won by its former competitor.
Joseph Ackerman, President and CEO ofwelcomed BVR’s employees to the family. “The acquisition of BVR System’s business activities is in line with our long-term strategy of growth through mergers and acquisitions of complementary companies with high synergistic value” Ackerman said adding that BVR’s the company’s assets complement Elbit Systems’ other training capabilities. BVR’s CEO Ilan Gillies believes that Elbit and BVR are complementing each other in product lines and market reach. “The corporate culture is by and large similar which will make for a smooth integration” Gillies said. “We have chosen to combine our resources with Elbit since we recognize the synergies and I am very confident that this is the right choice for BVR.” said Aviv Tzidon, BVR’s Chairman of the Board.