Elbit Systems Buys Nice's Cyber Intelligence Unit for Up to $158 Mln

Israeli defense electronics firm seeks to boost its presence in the fast-growing market.

Tova Cohen
An image broadcast by an Elbit drone in use by the Israel Police.
An image broadcast by an Elbit drone in use by the Israel Police.Credit: Gini / Ancho Gosh
Tova Cohen

REUTERS - Israeli defense electronics firm Elbit Systems has agreed to buy Nice Systems' cyber and intelligence division for $157.9 million as it seeks to boost its presence in this fast-growing market.

Elbit, Israel's largest listed defence company, will pay $117.9 million in cash at closure of the deal, expected in the third quarter. An additional amount of up to $40 million will be paid based upon the business' future performance.

Nice's cyber and intelligence division provides law enforcement agencies and intelligence organisations with tools for generating intelligence from communications.

The division will be acquired by CYBERBIT, Elbit's subsidiary that was recently established to consolidate the company's activities in cyber intelligence and cyber security.

"Nice is a well-known world leader in the cyber intelligence industry and its business activities and capabilities are complementary to ours," Elbit Chief Executive Bezhalel Machlis said on Thursday.

Machlis said earlier this week he sees cyber security and intelligence as growth engines for the company, whose drones and surveillance systems are top sellers around the world.

Nice, whose analytical software enables companies to spot fraud and fend off security threats, said the sale would allow it to place greater focus on its core markets.

It said its previous forecast included a full-year contribution from the intelligence division of $80 million in revenue and 9 cents in diluted earnings per share (EPS) excluding one-off items.

For the second quarter its forecast included a contribution of $20 million in revenue and 3 cents in adjusted EPS.

As a result of this agreement, Nice now expects second quarter revenue from its continued operations to be in a range of $229 million to $237 million, compared with a previous forecast of $249 million to $257 million. It estimates second quarter EPS of 64-70 cents, down from 67-73 cents.

For the full year, Nice estimates 2015 revenue of $985 million to $1.005 billion and adjusted EPS of $3.01-$3.12. It expects the sale will be neutral to earnings in 2016.

Click the alert icon to follow topics:



Automatic approval of subscriber comments.

$1 for the first month

Already signed up? LOG IN

Rep. Henry Cuellar attends a campaign event on Wednesday, in San Antonio, Texas.

AIPAC-backed Dem Declares Victory Against Progressive Challenger in Texas Runoff

Iranian President Ebrahim Raisi and Atomic Energy Organization of Iran chief Mohammad Eslami at an event for Nuclear Technology Day in Tehran, last month.

Prospects for Reviving Iran Nuclear Deal 'Tenuous' at Best, U.S. Envoy Says

A family grieves outside the SSGT Willie de Leon Civic Center following the mass shooting at Robb Elementary School in Uvalde, Texas on Wednesday.

Israeli PM Offers Condolences After Texas Gunman Kills 21 at Elementary School

U.S. President Joe Biden, this week.

Biden Decides to Keep Iran's Revolutionary Guards on Terror List, Says Report

ADL CEO Jonathan Greenblatt.

Progressive Jews Urge ADL Chief to Apologize for Calling Out Democratic Activist

Democratic Sen. Bernie Sanders with Jessica Cisneros in San Antonio last week.

It’s AIPAC vs. Bernie Sanders in Too-close-to-call Texas Democratic Runoff