|Traded as||TASE: ESLT NASDAQ: ESLT|
|Key people||Michael Federmann (Chairman of the board), Bezhalel Machlis(President and CEO)|
|Revenue||US$ 2,925 million (2013)|
|Employees||Approximately 12,000 (2013)|
Elbit Systems Ltd. is an Israel-based international defense electronics company engaged in a wide range of programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned aircraft systems ("UAS"), advanced electro-optics, electro-optic space systems, EW suites, signal intelligence ("SIGINT") systems, data links and communications systems and radios.
The Company also focuses on the upgrading of existing military platforms, developing new technologies for defense, homeland security and commercial aviation applications and providing a range of support services, including training and simulation systems.
Elbit Systems has approximately 12,000 employees, the majority of whom are engaged in engineering, research and development and other technical areas.
Elbit Systems' shares are traded on the Tel Aviv Stock Exchange and OTC in the United States (NASDAQ:ESLT).
- 1 History
- 2 Major subsidiaries
- 3 Global presence
- 4 Divestment
- 5 Products
- 6 Unmanned Surface Vehicles
- 7 See also
- 8 References
- 9 External links
Early years – A division within Elron
Elbit Systems was founded in 1966 by Elron Electronic Industries (TASE: ELRN), which combined the existing expertise within the Israel Ministry of Defense-Research Institute in special computer design with Elron's experience in electronic product design, manufacture and management (initially under the name Elbit Computers). Elbit steadily expanded developing and producing logistic-support weapon delivery and navigation systems for most Israeli aircraft, establishing a combat avionics package for the IAI Lavi fighter aircraft, and producing a fire-control system for the Merkava tank.
1996 IPO on NASDAQ
In 1996, Elbit spun off into three independent companies:
- Elbit Medical Imaging NASDAQ: EMITF – During 1999 to 2000 Elscint (Another affiliate of Elron) and Elbit Medical Imaging sold their imaging activities to General Electric Medical Systems and to Picker (now part of Philips Medical Systems) for approximately $600 million.
- Elbit Systems – Created as the defence electronics arm of Elbit, the company had an initial public offering on the NASDAQ stock market and finished its first day of trading at a price of $7.75 (on August 25, 2009 it reached an all-time high of $70.69).
- Elbit – which focused on communications activities and in 1999 led the consortium that founded Partner Communications Company Ltd., Israel's first GSM operator NASDAQ: PTNR. In 2002, Elbit was merged into Elron. Elron sold its shares in Partner during 2003–2006 for approximately $160 million.
Merger with El-Op
In 2000 Elbit Systems merged with El-Op (a company controlled by the current Chairman, Michael Federmann), creating the largest non governmental defense electronics company in Israel and increasing Elbit Systems' value which later in 2004 enabled Elron to sell its shares in Elbit Systems for approximately $200 million. Following the merger with El-Op, Michael Federmann became the largest shareholder in the combined group.
Growth by acquisition
Following the merger with El-Op, Michael Federmann and CEO Joseph Ackerman led an aggressive growth by acquisitions strategy.
The company acquired companies, including:
- Tadiran Communications
- Shiron Satellite Communications
- BVR Systems
- Assets of Israel Military Industries’ Aircraft Systems Division
- Innovative Concepts, Inc.
- Mikal Ltd (the company initially purchased 19% of the firm, and later agreed to acquire Mikal's 100% holdings in Soltam Systems and Saymar and the 87.85% portion of ITL held by Mikal, in exchange Mikal's owners received the 19% of Mikal that Elbit had purchased) Elbit subsequently announced a cash tender offer for the 12.15% remainder of ITL held by the public.
- Elbit Systems Intelligence and Electro-optics – Elop Ltd.
- Elbit Systems Land and C4I Ltd.
- Elbit Systems EW and SIGINT – Elisra Ltd.
- Elbit Systems – Cyclone Ltd.
- Elbit Security Systens Ltd.
- Kinetics Ltd.
- SCD – Semi-Conductor Devices
- Opgal – Optronics Industries Ltd.
- Elbit Systems of America, LLC
Former holdings and spin-offs
- Elbit Vision Systems (NASDAQ: EVSNF) – a developer and manufacturer of Automated Optical Inspection solutions for textile manufacturing processes, founded in 1992 and had an initial public offering on the NASDAQ in 1996.
- Chip PC Technologies (TASE: CPPC) – a developer and manufacturer of thin client solutions for server-based computing; Elbit acquired 20% of the company is 2005.
France – On June 19, 2011, Elbit announced that its subsidiary Elisra Electronic Systems Ltd. was awarded a contract valued at approximately €5 million to supply hundreds of units of its AN/PRC-684 Personal Locator Beacon to the French Ministry of Defense, equipping the French Air Force, Army, Navy and DGA (Direction Générale de l'Armement). The project is to be performed within 24 months.
Italy – On June 22, 2011, Elbit announced that it was awarded a contract valued in excess of $15 million by Elettronica S.p.A to participate in a program to supply the ELT/572 DIRCM (Directed Infra-Red Countermeasures) system for installation on various platforms of the Italian Air Force, including the C130J, C27J and AW101. The contract is to be performed over the next three years.
Romania – Elbit Systems' activities in Romania, which started in 1996, are primarily carried out through its wholly owned Romanian subsidiaries, Elbit Systeme S.A., A-E Electronics S.A, Elmet International SRL and Simultec SRL, which employ approximately 400 employees. On May 24, 2011, Elbit announced that it was awarded a contract valued at approximately $18.6 million to upgrade the Romanian Air Forces' C-130 transport aircraft. According to the agreement, the C-130 aircraft will be installed with various types of advanced electronic systems, including those produced by Elbit Systems' wholly owned subsidiary – Elisra Electronic Systems Ltd. The project, to be performed over four years, will be executed in cooperation with local companies in Romania, lead by the Romanian Aeronautical Industry.
United Kingdom – In 2005 Elbit set up a joint venture company in the UK with Thales, UAV Tactical Systems Ltd (U-TacS), developing the British Army Watchkeeper WK450. On December 7, 2007 it was announced that QinetiQ will join the programme as a sub-contractor to provide testing services at ParcAberporth, West Wales. In 2007, Elbit acquired Ferranti Technologies (Group) Limited.
- EFW in Fort Worth, Texas (the EFW facility also houses ESA's home office)
- EFW manufactures various components for the F-16, V-22, and Bradley Fighting Vehicle, among other programs. It was initially the electronics manufacturing facility for General Dynamics operations in Fort Worth; when GD sold its aviation business to Lockheed Martin the latter was not interested in the facility which was then sold to Elbit.
- IEI in Talladega, Alabama (formerly International Enterprises, Inc.)
- Kollsman Inc. in Merrimack, New Hampshire (founded in 1928 by Paul Kollsman, who invented barometers and instrument flight in airplanes)
- Talla-Com in Tallahassee, Florida
- Innovative Concepts, Inc. (ICI) in McLean, Virginia, purchased in November 2008 from Herley Industries
- VSI in San Jose, California (a joint venture with Rockwell Collins, formerly known as Vision Systems International; Elbit and Rockwell Collins each own 50%)
- UAS Dynamics in Fort Mill, South Carolina (originally a 50–50 joint venture with General Dynamics Armament and Technical Products; on December 1, 2011 Elbit purchased GD's 50% share)
- M7 Aerospace in San Antonio, Texas
Brazil – In 2001, Aeroeletronica (AEL), a Brazilian company that had more than two decades of experience in the defense industry has become a part of the Elbit Systems Group. In January 2011, Elbit announced that it had bought two more Brazilian companies: Ares Aeroespecial e Defesa, and Periscopio Equipamentos Optronicos. In April 2011, Embraer has entered into a strategic agreement with AEL Sistemas S.A (“AEL”), a wholly owned subsidiary of Elbit Systems. The two companies were yet to define the specific programs to be pursued but, according to officials from the two companies, the main goals of the cooperation were the expanding of joint activities in the area of unmanned aircraft systems, including the anticipated creation of a jointly owned company, with majority participation of Embraer D&S. One of the primary goals of the joint venture will be to promote the introduction and use of Elbit Systems Hermes 450 UAV in the service of the Brazilian Air Force.
Colombia – In March 2010, a $28 million contract for Hermes 450 UAVs was suspended by the Colombian government after media reports based on anonymous letters alleged that Colombian officials had been bribed. The Israeli Ministry of Defense investigated and found that the letters likely came from Israel Aerospace Industries, a competitor that lost the tender. The incident led to a review of the regulations governing overseas competition between Israeli defense companies.
On September 3, 2009, the Norwegian Pension Fund's ethical council decided to sell the fund's stocks in Elbit due to the corporations supply of surveillance systems for the Israeli West Bank barrier. At a press conference to announce the decision, Minister of Finance Kristin Halvorsen said "We do not wish to fund companies that so directly contribute to violations of international humanitarian law". The Norwegian Ambassador to Israel was called to a meeting at the Israeli Foreign Ministry where the decision was protested.
In January 2010, Danske Bank added Elbit to the list of companies that fail its Socially Responsible Investment policy; a bank spokesman noted that it was acting in the interests of its customers by not 'placing their money in companies that violate international standards'. The Danish financial watchdog Danwatch has also placed Elbit on its ethical blacklist, and one of Denmark's largest pension fund administrators PKA Ltd announced it will no longer consider investing in Elbit, stating "The ICJ stated that the barrier only serves military purposes and violates Palestinian human rights. Therefore we have looked at whether companies produce custom-designed products to the wall and thus has a particular involvement in repressive activities."
In March 2010, a Swedish pension fund not wanting to be associated with companies which in its opinion are violating international treaties, boycotted Elbit Systems for being involved in constructing the Israeli West Bank security fence.
Unmanned Aerial Vehicles
- Elbit Hermes 90
- Elbit Hermes 450
- Elbit Hermes 900
- Elbit Skylark
- Silver Arrow Micro-V
- Silver Arrow Sniper
Unmanned Surface Vehicles
- "Elron's story - Technology Investment With Vision". Retrieved 2009-10-06.
- Elbit Systems Signs Agreement to Acquire Mikal's Holdings in Soltam, Saymar and ITL, September 2, 2010, PRNewswire
- Elbit Systems acquired an approximately 20% interest (18.5% plus a loan convertible into additional shares) in Chip PC Ltd. ESLT 20 °F (−7 °C) filed May 28, 2008.
- "Elbit Systems' Elisra to Supply Personal Search and Rescue Locator Beacons to the French Ministry of Defense" (Press release). Elbit Systems. June 19, 2011. Retrieved June 26, 2011.
- "Elbit Systems to Supply DIRCM Systems to the Italian Air Force" (Press release). Elbit Systems. June 22, 2011. Retrieved June 26, 2011.
- "Elbit Systems to Upgrade Romanian Air Forces' C-130 Transport Aircraft Under Contract Valued at $18.6 Million" (Press release). Elbit Systems Ltd. May 24, 2011. Retrieved May 24, 2011.
- "Qinetiq wins Watchkeeper drone test contract". Retrieved October 6, 2009.
- "Elbit Systems Acquires the UK Company Ferranti Technologies for GBP15 Million (US$31 Million)". Aviation Today. July 26, 2007. Retrieved April 30, 2010.
- "EFW acquires helmet-mounted display product line from Honeywell". Military & Aerospace Electronics. January 2, 2001.
- Goldman, Laura (October 15, 2006). "Israeli technology to keep US borders safe". Israel21c. Retrieved April 11, 2007.
- "Herley Industries, Inc. Sells Innovative Concepts, Inc. ('ICI')". Herley News. November 11, 2008. Retrieved July 1, 2010.
- "Aeroeletrônica". Ael.com.br. Retrieved July 24, 2010.[dead link]
- "Elbit Systems Acquires Brazilian Companies". Retrieved January 2, 2011.
- Eshel, Tamin (April 12, 2011). "Embaer Enters Unmanned Vehicles Market through Partnership with Elbit Systems, Santos Lab". Defense Update Website. Retrieved April 14, 2011.
- "World divided between IAI, Elbit – Israel Business, Ynetnews". Ynetnews.com. July 23, 2010. Retrieved July 24, 2010.
- "Israel investiga saboteo de venta a Colombia de aviones – Noticias de Justicia en Colombia". Eltiempo.Com. Retrieved July 24, 2010.
- "Norwegian Gov't Pension Fund exits Elbit Systems". Globes [online], Israel business news. September 3, 2009. Retrieved September 4, 2009.
- Hass, Amira; Barak Ravid (September 3, 2009). "Israel summons Norway envoy to protest divestment from arms firm". Haaretz. Retrieved March 1, 2010.
- "Israeli companies excluded from bank's investments". Copenhagen Post. January 25, 2010. Retrieved March 1, 2010.
- "Danish pension funds divest from Israeli companies". Ma'an News Agency. January 27, 2010. Retrieved March 1, 2010.
- "DanWatch's sortliste" (in Danish). Danwatch. January 1, 2010. Retrieved March 1, 2010.[dead link]
- Bettini, Daniel (08 27 10). "Europe's economic boycott of Israel expanding". Ynetnews.