Elbit to acquire Nice’ cyber and intelligence division for $157.9m

Elbit Systems has entered into an agreement to acquire Nice Systems’ Cyber and Intelligence division for a total amount of up to $157.9m.

Under the terms of agreement, the company will pay $117.9m in cash at the time of the closing, in addition to paying $40m as earn-out, based upon the future business performance of the acquired division’s activities.

The cyber and intelligence division will be acquired by Cyberbit, a recently established Elbit’s subsidiary focused on consolidating the company’s existing activities relating to the cyber intelligence and cyber security markets.

Nice’s Cyber and Intelligence division offers solutions that provide law enforcement agencies and intelligence organisations with tools for creating communication intelligence, and reported 2014’s revenue in the high tens of millions of dollars.

Elbit Systems president and CEO Bezhalel Machlis said: "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. Subject to certain closing conditions, the transaction is expected to close during the third quarter of this year.

"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."

Elbit Systems executive vice-president Adi Dar will serve as Cyberbit’s general manager and the Nice Cyber and Intelligence division’s employees will become employees of Cyberbit.

Cyberbit will focus on both the emerging government and commercial cyber markets, utilising its parent’s extensive and proven cyber experience and technologies.