TEL AVIV, Jan 25 (Reuters) - Israel's largest traded defence contractor Elbit Systems Ltd said on Monday it signed an agreement to buy the remaining shares in Azimuth Technologies Ltd.
In November 2008, Elbit Systems purchased 19 percent of Azimuth. Under the new agreement Elbit Systems' wholly owned subsidiary, Elbit Security Systems, will purchase the balance of Azimuth's shares from Azimuth's shareholders for about $46.5 million (173 million shekels).
In the event that prior to the acquisition Azimuth distributes a dividend in the amount of $5.4 million, the consideration will be reduced by $4.3 million.
Azimuth is an Israel-based company operating in the areas of satellite navigation systems (GPS), electro-optics and data communications for defence, para-government and civil applications. Azimuth has a subsidiary in the UK engaged in similar activities.
'The acquisition of the balance of Azimuth's shares underscores our long-term strategy of growth through mergers and acquisitions of complementary companies with high synergistic value,' Joseph Ackerman, Elbit president and chief executive, said in a statement.
The transaction is subject to approval by a general meeting of Azimuth's shareholders as well as the Israeli Antitrust Authority.
(Reporting by Tova Cohen, editing by Will Waterman) Keywords: ELBITSYSTEMS AZIMUTH/ (telaviv.newsroom@reuters.com; +972-9-899-0222; Reuters Messaging: tova.cohen.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
In November 2008, Elbit Systems purchased 19 percent of Azimuth. Under the new agreement Elbit Systems' wholly owned subsidiary, Elbit Security Systems, will purchase the balance of Azimuth's shares from Azimuth's shareholders for about $46.5 million (173 million shekels).
In the event that prior to the acquisition Azimuth distributes a dividend in the amount of $5.4 million, the consideration will be reduced by $4.3 million.
Azimuth is an Israel-based company operating in the areas of satellite navigation systems (GPS), electro-optics and data communications for defence, para-government and civil applications. Azimuth has a subsidiary in the UK engaged in similar activities.
'The acquisition of the balance of Azimuth's shares underscores our long-term strategy of growth through mergers and acquisitions of complementary companies with high synergistic value,' Joseph Ackerman, Elbit president and chief executive, said in a statement.
The transaction is subject to approval by a general meeting of Azimuth's shareholders as well as the Israeli Antitrust Authority.
(Reporting by Tova Cohen, editing by Will Waterman) Keywords: ELBITSYSTEMS AZIMUTH/ (telaviv.newsroom@reuters.com; +972-9-899-0222; Reuters Messaging: tova.cohen.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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