Elbit Systems is in advanced negotiations with Koor Industries over the purchase of 24-30% of Koor's wholly owned defence electronics subsidiary Elisra Electronic Systems. Elisra is valued at over $300 million.
The two companies have signed a preliminary memorandum of agreement and a definitive deal is expected by the end of May, subject to due diligence, completion of negotiations and regulatory approvals.
Elisra specialises in electronic warfare suites for combat aircraft and advanced solutions for air, ground and naval applications. It also has holdings in Tadiran Electronic Systems, Spectralink and BVR Systems.
The purchase would increase the competition between Elbit, Israel's largest private defence contractor, and Israel Aircraft Industries (IAI).
Elbit, which is involved in a wide range of defence-related programmes, including aerospace, ground and naval systems, command, control and communications and advanced electro-optic technologies, is moving into areas that were previously dominated by IAI, such as military aircraft upgrades, unmanned air vehicles and space systems.
Source: Flight International
