Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or "the Company") announced today that, following the completion of the acquisition of IMI Systems Ltd. ("IMI") shares on November 25, 2018, and a reorganization in connection with the IMI acquisition, it expects to record in the fourth quarter of 2018 expenses estimated in the range of 65-75 million dollars. These costs will be recorded mainly in the "Cost of Revenues" line item in our Consolidated Statement of Income and will be eliminated in the Non-GAAP results due to the non-recurring nature of the expense.
The Company reorganized a number of its activities, in connection with the IMI acquisition. This reorganization included, among other measures, the establishment of two business divisions:
- The Land Systems Division to be focused on land-based systems, to include military vehicle systems, artillery systems and the IMI activities; and
- The C4I and Cyber Division focused on command & control, radio, communication, homeland security and cyber intelligence activities.
This reorganization is intended to improve the synergy within the Company with respect to the acquired activities and better address market requirements and customer support. The Company believes that the acquisition of IMI and the reorganization will positively affect the future business of Elbit Systems.
The overall impact on the financial results for the fourth quarter will be included in the Company's report for the quarter, which is planned to be released in March 2019.
About IMI Systems
IMI Systems Ltd is a globally recognized defense systems house, specializing in the development and manufacturing of comprehensive combat-proven solutions and technologies for the land, air, naval and cyber and homeland security (HLS) requirements of the modern battlefield. More than 8 decades of experience in the defense market bestow IMI Systems' reputation as a preferred and highly appreciated defense systems manufacturer in the areas of various precision munitions, Combat mobility, survivability and protection systems, armor solutions and HLS and Crisis management. IMI Systems' unique combination of capabilities enables its customers and business partners to enjoy the benefit of high standards, uncompromising quality solutions while facilitating their abilities to successfully cope with the demanding challenges of the future battlefield.