Israel’s Elbit Systems Ltd. [ESLT] yesterday said it has agreed to acquire another Israeli firm, BVR Systems [BVRSF], a developer of military training, simulation and debriefing systems, for $34 million in cash.
Terms of the deal include BVR paying back up to $3 million to Elbit depending on the status of payments BVR is receiving for ongoing projects as well as potential warranty obligations for 18 months after the transaction is concluded.
BVR will be required to maintain $1.5 million in escrow pending a review by Elbit that payments being received for projects are consistent with the stage of the program. If not, up to $1.5 million will subtracted from the agreed to purchase price.
The deal also required BVR to make a $1.5 million payment to Elbit 18 months after the deal closes depending on warranty obligations BVR expects in that time.
The deal must still be approved by the Israeli government.
BVR serves the air, sea, land and air defense training markets. The company offers live and virtual solutions, C4I for large distributed training sessions, as well as embedded avionics for live training with operational platforms.
Elbit said that BVR’s capabilities complement its training capabilities.