Elron Electronic Industries Announces Affiliate's Agreement with FLIR Systems

Strategic Insights -

Elron Electronic Industries, a leading multinational high technology holding company, has announced that its affiliate, Elbit Ltd., has reached a preliminary agreement with FLIR Systems to acquire Inframetrics, a privately held infrared imaging company. Under the terms of the agreement, FLIR Systems will issue approximately 2.3 million shares of its common stock to Inframetrics' shareholders in exchange for all outstanding stock. Elbit will receive approximately 460,000 shares, valued at around $9.2 million, subject to a lock-up period. The transaction is contingent upon regulatory approvals and shareholder approval from Inframetrics.

Key Takeaways:

  • Elbit Ltd., a 43% held affiliate of Elron Electronic Industries, has entered into a preliminary agreement with FLIR Systems to acquire Inframetrics, a privately held infrared imaging company.
  • FLIR Systems will issue approximately 2.3 million shares of its common stock to Inframetrics' shareholders in exchange for all outstanding stock.
  • Elbit will receive approximately 460,000 shares, valued at around $9.2 million, subject to a lock-up period.
  • The proposed transaction is subject to regulatory approvals and shareholder approval from Inframetrics' shareholders.
  • Elbit's proportion of the shares will be locked up until the tax implications and the share price at the time of any future sale are assessed.
  • Elron Electronic Industries is a multinational high technology holding company with affiliates in medical diagnostic imaging, advanced defense electronics, communication, semiconductors, networking, software, and information technology.
  • The company's shares are listed on the NASDAQ under the symbols ELRNF and ELBTF.

Statistics:

  • 43%: Elbit Ltd.'s holding in Elron Electronic Industries.
  • $3 million: Elbit's book value in Inframetrics, Inc.
  • approximately 2.3 million: Number of shares to be issued by FLIR Systems to Inframetrics' shareholders.
  • approximately 460,000: Number of shares Elbit will receive.
  • $9.2 million: Present value of the shares to be received by Elbit.
  • unknown: Tax implications and future share price at the time of any sale by Elbit of the shares.

Sources:

  • Business Wire, December 15, 1998
  • Elron Electronic Industries Ltd. release: http://www.elron.com

(http://www.elron.com)