Elbit Systems announced last week that it has signed an agreement acquire NICE Systems’ Cyber and Intelligence division for an amount up to $157.9 million, subject to certain customary adjustments. In a statement, the company said that out of the total amount, $117.9 million will be paid in cash at the time of closing, which is 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 on 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.
The Cyber and Intelligence division will be acquired by CYBERBIT LTD, Elbit Systems’ subsidiary, which was recently established to consolidate the company’s 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. The division’s employees will become employees of CYBERBIT.
“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,” said Elbit Systems President and CEO Bezhalel Machlis. "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.”
