NICE Systems (NASDAQ: NICE) has entered into an agreement to sell its Intelligence division to Elbit Systems, for a total consideration of up to $157.9 million, subject to certain performance milestones and customary adjustments.
NICE's Intelligence division offers solutions which provide law enforcement agencies, intelligence organizations and signal intelligence agencies with tools for generating intelligence from communications.
This divestiture will allow NICE to place greater focus on the execution of its long-term strategic plan and to focus on its core markets and business model.
"We are proud of the many years of success this division has enjoyed," said Barak Eilam, CEO of NICE. "As we continue to execute our long-term strategic plan, we have arrived at a juncture where we believe it is in our best interest to divest Intelligence in order to focus on the company's more synergetic, core businesses."
Eilam continued, "We are pleased to reach this agreement with a market leader such as Elbit Systems, which I am confident will ensure the continued success and growth of this important business, and serve as a good home for the division's customers and employees."
Subject to certain conditions and satisfaction of terms, the transaction is scheduled to close in early Q3, 2015.
Within the structure of the agreement, NICE will receive $117.9 million in cash at the time of the closing. An additional amount of up to $40 million will be paid as earn-out, based upon the future business performance of the acquired division's activities.