Elbit Systems
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, electronic warfare suites, signal intelligence (SIGINT) systems, data links and communications systems and radios.
Elbit System headquarters in Matam, Haifa technology park | |
Public | |
Traded as | TASE: ESLT NASDAQ: ESLT |
ISIN | IL0010811243 |
Industry | Defence Electronics |
Founded | 1966 |
Headquarters | , |
Key people | Michael Federmann (Chairman) Bezhalel Machlis (CEO and President) |
Revenue | |
Owner | Federmann Enterprises Ltd. (45.8%)[2] |
Number of employees | 17,000 (2019) |
Subsidiaries | Elbit Systems of America Elbit Systems Electro-Optics – Elop |
Website | www.elbitsystems.com |
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.
In 2016, Elbit Systems had approximately 13,895 employees, the majority of whom are engaged in engineering, mechanics, research and development, and other computing and technical areas.[3]
Elbit Systems' shares are traded on the Tel Aviv Stock Exchange and NASDAQ.
History
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.[4]
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 with the symbol NASDAQ:ESLT and finished its first day of trading at a price of $7.75. Elbit Systems has a market cap of over $5 Billion.
- Elbit – which focused on communications activities and in 1999 led the consortium that founded Partner Communications Company, 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),[5] 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.[6] 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:
- Elisra
- 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)[7] Elbit subsequently announced a cash tender offer for the 12.15% remainder of ITL held by the public.[8]
Recent news
In October 2014, Elbit Systems won a $12.7 million contract for the supply and provision of Apache Aviator Integrated Helmets for the US Army helicopter fleet. The contract would be delivered over a two-year period.[9]
On March 22nd 2018, Elbit Systems and Universal Avionics announced today that Elbit “is in the process of completing the acquisition of the privately owned U.S. company Universal Avionics Systems Corporation [UASC] through an asset acquisition agreement.” The deal is expected to close “in the coming weeks.”
In the year of 2019, Elbit Systems purchased the night vision business of Harris Corp. in America for $350 million.[10]
In April 2019 Elbit Systems informed that it had partnered with DA-Group to offer immune solutions to global navigation satellite systems.[11]
In August 2019, Elbit Systems won an IMOD contract to install the Iron Fist active protection system on the IDF's new Eitan AFV and the IDF's fleet of armored D9 bulldozers.[12]
Major subsidiaries
- 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 Systems Ltd.
- Kinetics Ltd.
- SCD – Semi-Conductor Devices
- Opgal – Optronics Industries Ltd.
- Elbit Systems of America, LLC
- IMI Systems
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 in 2006.[13]
- Everysight – a developer and manufacturer of an augmented reality smartglasses for cyclists, founded in 2016.[14]
Global presence
Europe
North America
- 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.[22]
- 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[24]
- 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)[25]
- M7 Aerospace in San Antonio, Texas[26]
- ESA completed the purchase of the Night Vision division (Roanoke, VA) from L3Harris on September 15, 2019
South America
Southeast Asia
Spyware
On 6 December 2017, Citizenlab published a detailed report that showed that Ethiopian dissidents and journalists in the US, UK, and other countries were targeted by sophisticated commercial spyware, sold and operated by Cyberbit, a wholly owned subsidiary of Elbit Systems.[36][37] In a reply to an inquiry from Human Rights Watch on the topic, Cyberbit did not deny selling this kind of technology, and rejected the responsibility of its possible misuse on its customers.[38]
Divestment
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.[39] 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.[40]
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'.[41][42] The Danish financial watchdog Danwatch has also placed Elbit on its ethical blacklist,[43] 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."[42]
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 barrier.[44]
In April 2019, the publication of a report entitled AXA: Financing War Crimes[45] by SumOfUs highlighted that AXA's investment subsidiary, AXA Investment Managers, a French investment firm, divested from Elbit in December 31, 2018.[46] However, the same study notes that their affiliate AXA Equitable Holdings maintains investment in the company.[47]
Products
Unmanned aerial vehicles
Unmanned surface vehicles
Communication
See also
References
- "Elbit - Investor Relations -Financial Reports". ir.elbitsystems.com.
- "Elbit - Investor Relations -Ownership". ir.elbitsystems.com.
- "Employees, Elbit Systems".
- "Elron's story - Technology Investment With Vision". Archived from the original on June 18, 2010. Retrieved October 6, 2009.
- "Elbit Systems Ltd. and Elop Electro-Optics Industries Ltd.Announce the Signing of a Merger Agreement". Defense Aerospace.
- "Elron Announces Completion of the Sale of all its holdings in Elbit Systems to Federmann Enterprises Ltd. for approximately $197 million". Business Wire. Retrieved July 28, 2004.
- Ltd, Elbit Systems. "Elbit Systems Signs Agreement to Acquire Mikal's Holdings in Soltam, Saymar and ITL".
- "Elbit - Investor Relations -Press Releases".
- Israel's Elbit Systems wins U.S. Army helmet contract. Reuters, 12 October 2014
- Solomon, Shoshanna. "Elbit to buy US night vision firm for $350 million in bid to boost US activities". www.timesofisrael.com. Retrieved December 4, 2019.
- "Elbit, DA-Group to offer GNSS immune technology - DB - Digital Battlespace - Shephard Media". www.shephardmedia.com. Retrieved November 19, 2019.
- "Israeli Ministry of Defense Selects Elbit Systems' Iron Fist Light Decoupled Active Protection System for the Eitan AFV". elbitsystems.com. Retrieved December 4, 2019.
- 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 System's augmented reality smartglasses spin off, Everysight, announces an exclusive test pilot program for cyclists". Elbit Systems. Retrieved December 7, 2016.
- "Turkey to Azerbaijan: Stand with us against Israel". Retrieved June 26, 2017.
- "Elbit Systems Acquires OIP from Delft Instruments". Photonics. Photonics Media. July 7, 2003. Retrieved June 11, 2018.
Elbit Systems Ltd. announced today it has acquired Optronics Instruments & Products NV (OIP), based in Oudenaarde, Belgium, from Delft Instruments N.V. of the Netherlands, through Elbit's subsidiary, electro-optic systems developer Elop Electro-Optics Industries Ltd.
- "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". Archived from the original on August 9, 2009. 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. Archived from the original on July 14, 2012.
- Goldman, Laura (October 15, 2006). "Israeli technology to keep US borders safe". Israel21c. Archived from the original on September 28, 2007. Retrieved April 11, 2007.
- "Herley Industries, Inc. Sells Innovative Concepts, Inc. ('ICI')". Herley News. November 11, 2008. Retrieved July 1, 2010.
- "Elbit - Investor Relations -Press Releases".
- "Elbit - Investor Relations -Press Releases". Archived from the original on February 4, 2019. Retrieved January 13, 2011.
- "Aeroeletrônica". Ael.com.br. Archived from the original on August 11, 2003. Retrieved July 24, 2010.
- "Elbit Systems Acquires Brazilian Companies". Archived from the original on January 4, 2011. Retrieved January 2, 2011.
- Eshel, Tamin (April 12, 2011). "Embaer Enters Unmanned Vehicles Market through Partnership with Elbit Systems, Santos Lab". Defense Update Website. Archived from the original on April 12, 2011. 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.
- Parameswaran, Prashanth. "Philippines Gets New Artillery Systems from Israel". thediplomat.com. Retrieved December 4, 2019.
- "Significant breakthrough for Elbit Systems in the Philippines: Elbit Systems Awarded an Approximately $20 Million Contract for the Supply of Upgraded APCs to the Philippines Armed Forces". Elbit Systems. Retrieved December 4, 2019.
- "Report: Elbit Systems to Upgrade M113 APCs for Philippine Army | Israel Defense". www.israeldefense.co.il. Retrieved December 4, 2019.
- Interaksyon (October 19, 2017). "WATCH | Did China-supplied firearm take out Isnilon Hapilon, Omarkhayam Maute?". Interaksyon. Retrieved December 4, 2019.
- "Champing at the Cyberbit: Ethiopian Dissidents Targeted with New Commercial Spyware". The Citizen Lab. December 6, 2017. Retrieved July 9, 2019.
- "Ethiopia: New Spate of Abusive Surveillance". Human Rights Watch. December 6, 2017. Retrieved July 9, 2019.
- "Cyberbit Solutions Response to Human Rights Watch". Human Rights Watch. December 6, 2017. Retrieved July 9, 2019.
- "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. Archived from the original on January 31, 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. Archived from the original on October 7, 2011. Retrieved March 1, 2010.
- Bettini, Daniel (August 27, 2010). "Europe's economic boycott of Israel expanding". Ynetnews.
- "AXA: Financing War Crimes". SumOfUs. Retrieved July 9, 2019.
- "France investment firm AXA IM divests from Israel arms manufacturer". Middle East Monitor. April 18, 2019. Retrieved July 9, 2019.
- "AXA: Financing War Crimes" (PDF). SumOfUs. Retrieved July 8, 2020.