Herley Industries (HRLY) yesterday said it acquired Eyal Microwave Industries (EMI), a privately held Israeli company in an all cash transaction.
“We believe the combination of these companies will form the largest independent purely microwave company outside of the U.S. and possibly worldwide,” Myron Levy, Herley chairman and CEO, said in a statement.
Eyal Microwave Industries is a leading supplier of a broad range of innovative, high-reliability, RF, microwave and millimeter wave components and customized subsystems for the global defense industry. EMI includes Eyal Microwave Ltd and its subsidiary Eyal Mag Ltd.
Herley Industries Inc. will acquire EMI through its own subsidiary in Israel, General Microwave Israel Corp. (GMIC).
“EMI is an excellent fit with Herley. Their core capabilities include complex integrated microwave assemblies and off-the-shelf components for radar, ESM, ECM and communication systems, which will complement and expand our current product line,” Levy said. “Our most formidable competitor in Israel, EMI has customers and programs that will further strengthen our already solid presence in the international marketplace.”
As Herley reported earlier, GMIC as a stand-alone is the most profitable company subsidiary.
“When combined, GMIC and Eyal will have initial revenues in excess of $40 million per year with excellent prospects for reaching $50 million a year within the next year,” Levy said.