Israeli defense firm Elbit is looking to expand in the U.S. market

The company recently acquired Universal Avionics System for $120 million and the IMI from the Israeli government for $500 million.

Elbit Systems Ltd., an Israeli defense electronics and aerospace company, has recently recorded a staggering rise in its quarterly profit which comes on heels after the acquisition of rival IMI, and claims it is now focusing its target on the U.S. market to fuel growth.

According to reports, Elbit is in talks with Harris Corp. on a deal to buy the firm’s night vision business for $350 million, making it Elbit’s third acquisition since 2018 that would offer at least $160 million in its annual revenue. Sources cite that the firm would close this deal by early fourth quarter depending on various approvals.

Speaking on the move, Bezhalel Machlis, Chief Executive Officer, Elbit Systems, said that the acquisition would bolster their position in the U.S market and will cement their hold on the night vision and the commercial avionic business in the United States.

Reports claim that Elbit has managed to record a steady growth of 28% in total sales from the U.S. and has managed to scale to $1.06 billion in the second quarter, out of which 20% revenue is from Israel. However, Machlis says that IMI, which already was a profitable organization, has enabled Elbit to bid on millions of dollars of international contracts since its acquisition.

Reliable sources cite that IMI, creators of the open-bolt submachine gun Uzi, is currently anticipated to record total revenue of $500 million in 2019. Meanwhile, Elbit’s order backlog recently raised $9.8 billion, more compared to its $8.1 billion mark in 2018.

Furthermore, 60% of backlogs are for orders that were recorded outside of Israel, with more than half of the backlog scheduled to be executed in the other half of 2019 and in 2020. Meanwhile, Machlis claims that countries like Netherland, Australia and Britain have become important regional markets for Elbit growth.

Source Credit: https://in.reuters.com/article/elbit-systems-results/israeli-defence-firm-elbit-eyes-u-s-market-for-further-growth-idINKCN1V51FH