Elbit Systems has signed a share purchase agreement with shareholders that, to the best of ESLC-T's knowledge, as the date of this announcement, hold more than 90% of the shares of Shiron Satellite Communications (1996) Ltd. ("Shiron"), a privately-owned Israeli company, in the framework of an offer for the purchase from Shiron's shareholders of 100% of Shiron's issued share capital, in accordance with the Israeli Companies Law – 1999, for the total consideration of U.S.$16 million.
Shiron is engaged in the broadband communication market. Its solutions are suited for the growing interactive multimedia broadband satellite market. Shiron's InterSKY(TM) satellite communications system provides broadband satellite services to remote locations Shiron's technology, well proven in the commercial market, is anticipated to be synergetic to the communication technology developed and implemented in ESLC-T's military systems and products.
The final consideration to be paid by ESLC-T for the purchased shares and the redemption and cancellation of all options and convertible securities of Shiron, is subject to certain adjustments, including the amount of Shiron's working capital on the date of the closing of the transaction.
Completion of the transaction is subject to the fulfillment of certain conditions customary for such agreements, including the acquisition of 100% of the issued share capital of Shiron according to the Companies Law.
