Elbit Systems
Encyclopedia
Haifa
Haifa is the largest city in northern Israel, and the third-largest city in the country, with a population of over 268,000. Another 300,000 people live in towns directly adjacent to the city including the cities of the Krayot, as well as, Tirat Carmel, Daliyat al-Karmel and Nesher...
, Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
, Elbit employs 11,000 people worldwide.
Elbit Systems is traded on NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
as well as on the Tel Aviv Stock Exchange
Tel Aviv Stock Exchange
The Tel Aviv Stock Exchange in Tel Aviv is Israel's only stock exchange.The TASE is the only public market for trading securities in Israel. It plays a major role in the Israeli economy....
where it is a constitute of the TA-25 Index of leading shares; As of 2010, over 45% of its stock is owned or controlled by Michael Federmann, who serves as the company's Chairman of the Board.
Early years – A division within Elron
Elbit Systems was founded in 1966 by Elron Electronic IndustriesElron Electronic Industries
Elron Electronic Industries is a technology holding company based in Haifa Israel; since 1962 the company has been involved in setting-up, funding and developing over 30 companies and is considered one of the foundation stones of the high-tech industry in Israel...
, 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
IAI Lavi
The IAI Lavi was a combat aircraft developed in Israel in the 1980s. It was a multi-billion dollar fighter aircraft project that was disbanded when the Israeli government concluded it could not finance production on its own, could not achieve a consensus on the Lavi's cost-effectiveness and...
fighter aircraft, and producing a fire-control system for the Merkava
Merkava
The Merkava is a main battle tank used by the Israel Defense Forces. The tank began development in 1974 and was first introduced in 1978. Four main versions of the tank have been deployed. It was first used extensively in the 1982 Lebanon War...
tank.
1996 IPO on NASDAQ
In 1996, Elbit spun off into three independent companies:- Elbit Medical Imaging - During 1999 to 2000 ElscintElscintElscint Ltd. was an Israeli technology company that development, manufacture and sold medical imaging solutions, including: Nuclear medicine, computed tomography magnetic resonance imaging and X-ray scanners. Elscint's shares traded on the NASDAQ as well as on the Tel Aviv Stock Exchange. At its...
(Another affiliate of Elron) and Elbit Medical Imaging sold their imaging activities to General Electric Medical Systems and to Picker (now part of PhilipsPhilipsKoninklijke Philips Electronics N.V. , more commonly known as Philips, is a multinational Dutch electronics company....
Medical Systems) for approximately $600 million. - Elbit Systems – Created as the defence electronics arm of Elbit, the company had an initial public offeringInitial public offeringAn initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
on the NASDAQ stock market and finished its first day of trading at a price of $7.75 (on 25 August 2009 it reached an all time high of $70.69). - Elbit - which focused on communications activities and in 1999 led the consortium that founded Partner Communications Company Ltd.Partner Communications Company Ltd.Partner Communications Company Ltd. is a mobile network operator, internet Wi-Fi and fixed telephony service provider in Israel....
, Israel's first GSM operator . 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), 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. 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 (70% ownership)
- Tadiran Communications
- Shiron Satellite Communications
- BVR Systems
- Assets of Israel Military IndustriesIsrael Military IndustriesIsrael Weapons Industries , formerly the "Magen" division of the Israel Military Industries Ltd. is an Israeli firearms manufacturer. In 2005, the Small Arms Division of IMI was privatized....
’ 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) Elbit subsequently announced a cash tender offer for the 12.15% remainder of ITL held by the public.
Major subsidiaries
Elbit's major subsidiaries and affiliated companies include Elbit Systems Electro-Optics Industries Elop (Elop), Cyclone Aviation Products (Cyclone), TadiranTadiran
Tadiran refers to a former Israeli conglomerate, which was founded in 1962 by the merger of two companies, Tadir and Ran...
Communications, Silver Arrow, Ortek, and Elisra
Elisra
Elisra Group is an Israeli manufacturer of high-tech electronic devices for mainly but not exclusively military use. That includes equipment for electronic communication and surveillance, missile tracking and controlling systems, radar and lidar equipment. The group is composed of three companies:...
. Among products manufactured by Elbit are the Enhanced Tactical Computer
Enhanced Tactical Computer
The Enhanced Tactical Computer or ETC is a portable rugged computer, built by Elbit Systems, and used by the US Military. It is a modular system, built using COTS hardware, and enclosed in MIL-STD 810 cases, build to withstand harsh conditions and temperatures from -25° to 55°C.-Hardware:It is uses...
and the Elbit Hermes 450
Elbit Hermes 450
-Operators: *In June 2008, Azerbaijan ordered ten Hermes 450, choosing it over other drone models because of its "'invisibility' for the enemy's anti-aircraft defense." On September 12, 2011, a UAV was reportedly shot down by the air defense arm of the Nagorno-Karabakh Defense Army over the...
unmanned aerial vehicle
Unmanned aerial vehicle
An unmanned aerial vehicle , also known as a unmanned aircraft system , remotely piloted aircraft or unmanned aircraft, is a machine which functions either by the remote control of a navigator or pilot or autonomously, that is, as a self-directing entity...
.
Former holdings and spin-offs
- Elbit Vision Systems - a developer and manufacturer of Automated Optical InspectionAutomated optical inspectionAutomated optical inspection is an automated visual inspection of a wide range of products, such as printed circuit boards , LCDs, transistors, automotive parts, lids and labels on product packages or agricultural products...
solutions for textile manufacturing processes, founded in 1992 and had an initial public offeringInitial public offeringAn initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
on the NASDAQNASDAQThe NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
in 1996. - Chip PC TechnologiesChip PCChip PC Technologies is a developer and manufacturer of thin client solutions for server-based computing; where in a network architecture applications are deployed, managed and can be fully executed on the server.-History:...
- a developer and manufacturer of thin client solutions for server-based computing; Elbit acquired 20% of the company is 2005.
Europe
FranceFrance
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
- On 19 June 2011, Elbit announced that its subsidiary Elisra Electronic Systems Ltd. was awarded a contract valued at approximately €
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
5 million to supply hundreds of units of its AN/PRC-684 Personal Locator Beacon to the French Ministry of Defense, equipping the French Air Force
French Air Force
The French Air Force , literally Army of the Air) is the air force of the French Armed Forces. It was formed in 1909 as the Service Aéronautique, a service arm of the French Army, then was made an independent military arm in 1933...
, Army
French Army
The French Army, officially the Armée de Terre , is the land-based and largest component of the French Armed Forces.As of 2010, the army employs 123,100 regulars, 18,350 part-time reservists and 7,700 Legionnaires. All soldiers are professionals, following the suspension of conscription, voted in...
, Navy
French Navy
The French Navy, officially the Marine nationale and often called La Royale is the maritime arm of the French military. It includes a full range of fighting vessels, from patrol boats to a nuclear powered aircraft carrier and 10 nuclear-powered submarines, four of which are capable of launching...
and DGA (Direction Générale de l'Armement). The project is to be performed within 24 months.
ItalyItaly
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
- On 22 June 2011, Elbit announced that it was awarded a contract valued in excess of $
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
15 million by Elettronica S.p.A to participate in a program to supply the ELT/572 DIRCM (Directed Infra-Red Countermeasures) system for installation on various platforms of the Italian Air Force
Italian Air Force
The Italian Air Force has gone under different names in different periods:*Regia Aeronautica , from 1923 to June 1946*Aeronautica Nazionale Repubblicana, the air force of Italian Social Republic during World War II...
, including the C130J, C27J and AW101. The contract is to be performed over the next three years.
RomaniaRomania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
- Elbit Systems' activities in Romania, which started in 1996, are primarily carried out through its wholly owned Romanian subsidiaries, Elbit Systeme S.A., A-E Electronics S.A, Elmet International SRL and Simultec SRL, which employ approximately 400 employees.
On 24 May 2011, Elbit announced that it was awarded a contract valued at approximately $18.6 million to upgrade the Romanian Air Forces' C-130 transport aircraft. According to the agreement, the C-130 aircraft will be installed with various types of advanced electronic systems, including those produced by Elbit Systems' wholly owned subsidiary - Elisra Electronic Systems Ltd. The project, to be performed over four years, will be executed in cooperation with local companies in Romania, lead by the Romanian Aeronautical Industry.
United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
- In 2005 Elbit set up a joint venture company in the UK with Thales
Thales Group
The Thales Group is a French electronics company delivering information systems and services for the aerospace, defense, transportation and security markets...
, UAV Tactical Systems Ltd (U-TacS), developing the British Army
British Army
The British Army is the land warfare branch of Her Majesty's Armed Forces in the United Kingdom. It came into being with the unification of the Kingdom of England and Scotland into the Kingdom of Great Britain in 1707. The new British Army incorporated Regiments that had already existed in England...
Watchkeeper WK450. On 7 December 2007 it was announced that QinetiQ
QinetiQ
Qinetiq is a British global defence technology company, formed from the greater part of the former UK government agency, Defence Evaluation and Research Agency , when it was split up in June 2001...
will join the programme as a sub-contractor to provide testing services at ParcAberporth
ParcAberporth
ParcAberporth is a technology park created on what was Royal Air Force station Aberporth, near the village of that name in the county of Ceredigion, Wales. The station was one of two local sites that had been used as a site for a missile range that stretched out for some miles into the nearby...
, West Wales
Wales
Wales is a country that is part of the United Kingdom and the island of Great Britain, bordered by England to its east and the Atlantic Ocean and Irish Sea to its west. It has a population of three million, and a total area of 20,779 km²...
.
In 2007, Elbit acquired Ferranti Technologies (Group) Limited.
North America
United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
- Elbit owns several companies in the United States through its American subsidiary, Elbit Systems of America (ESA):
- EFW in Fort Worth, TexasFort Worth, TexasFort Worth is the 16th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, just southeast of the Texas Panhandle, the city is a cultural gateway into the American West and covers nearly in Tarrant, Parker, Denton, and...
(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 DynamicsGeneral DynamicsGeneral Dynamics Corporation is a U.S. defense conglomerate formed by mergers and divestitures, and as of 2008 it is the fifth largest defense contractor in the world. Its headquarters are in West Falls Church , unincorporated Fairfax County, Virginia, in the Falls Church area.The company has...
operations in Fort Worth; when GD sold its aviation business to Lockheed MartinLockheed MartinLockheed Martin is an American global aerospace, defense, security, and advanced technology company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda, Maryland, in the Washington Metropolitan Area....
the latter was not interested in the facility which was then sold to Elbit.
- 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
- IEI in Talladega, AlabamaTalladega, AlabamaTalladega is a city in Talladega County, Alabama, United States. At the 2000 census the population was 15,143. The city is the county seat of Talladega County. Talladega is approximately 50 miles east of Birmingham, Alabama....
(formerly International Enterprises, Inc.) - Kollsman Inc. in Merrimack, New HampshireMerrimack, New HampshireMerrimack is a town in Hillsborough County, New Hampshire, United States. The population was 25,494 at the 2010 census, making it the eighth-largest municipality in New Hampshire....
(founded in 1928 by Paul KollsmanPaul KollsmanPaul Kollsman was an American inventor. He invented barometers and instruments for instrument flight in airplanes....
, who invented barometers and instrument flight in airplanes)- Kollsman is a subcontractor to BoeingBoeingThe Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
on SBInetSBInetSBInet was a program initiated in 2006 for a new integrated system of personnel, infrastructure, technology, and rapid response to secure the northern and southern land borders of the United States...
, a high-tech security system for the U.S.-Mexico border in conjunction with the United States Department of Homeland Security.
- Kollsman is a subcontractor to Boeing
- Talla-Com in Tallahassee, FloridaTallahassee, FloridaTallahassee is the capital of the U.S. state of Florida. It is the county seat and only incorporated municipality in Leon County, and is the 128th largest city in the United States. Tallahassee became the capital of Florida, then the Florida Territory, in 1824. In 2010, the population recorded by...
- Innovative Concepts, Inc. (ICI) in McLean, VirginiaMcLean, VirginiaMcLean is an unincorporated community and census-designated place in Fairfax County in Northern Virginia. The community had a total population of 48,115 as of the 2010 census....
, purchased in November 2008 from Herley IndustriesHerley IndustriesHerley Industries , based in Lancaster, Pennsylvania, is an American company that specializes in supplying microwave and millimeter wave products to defense and aerospace industries. They provide solutions for radars, flight instrumentation, weapon sensors, electronic warfare systems and guidance... - VSI in San Jose, CaliforniaSan Jose, CaliforniaSan Jose is the third-largest city in California, the tenth-largest in the U.S., and the county seat of Santa Clara County which is located at the southern end of San Francisco Bay...
(a joint venture with Rockwell CollinsRockwell CollinsRockwell Collins, Inc. is a large United States-based international company headquartered in Cedar Rapids, Iowa, primarily providing aviation and information technology systems and services to governmental agencies and aircraft manufacturers.- History :...
, formerly known as Vision Systems International; Elbit and Rockwell Collins each own 50%) - UAS Dynamics in Fort Mill, South CarolinaFort Mill, South CarolinaFort Mill is a fast-growing suburban town in both York and Lancaster counties in the U.S. state of South Carolina, and a suburb of the city of Charlotte, North Carolina, and Rock Hill...
(a joint venture with General DynamicsGeneral DynamicsGeneral Dynamics Corporation is a U.S. defense conglomerate formed by mergers and divestitures, and as of 2008 it is the fifth largest defense contractor in the world. Its headquarters are in West Falls Church , unincorporated Fairfax County, Virginia, in the Falls Church area.The company has...
; Elbit and GD each own 50%) - M7 AerospaceM7 AerospaceM7 Aerospace LP is an aerospace company with its headquarters on the property of San Antonio International Airport in San Antonio, Texas.M7 is the successor organization to Fairchild-Dornier Aviation, having bought much of that firm's assets out of bankruptcy. M7 occupies the...
in San Antonio, TexasSan Antonio, TexasSan Antonio is the seventh-largest city in the United States of America and the second-largest city within the state of Texas, with a population of 1.33 million. Located in the American Southwest and the south–central part of Texas, the city serves as the seat of Bexar County. In 2011,...
South America
BrazilBrazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
- In 2001, Aeroeletronica (AEL), a Brazilian company that had more than two decades of experience in the defense industry has become a part of the Elbit Systems Group. In January 2011, Elbit announced that it had bought two more Brazilian companies: Ares Aeroespecial e Defesa, and Periscopio Equipamentos Optronicos. In April 2011,Embraer
Embraer
Embraer S.A. is a Brazilian aerospace conglomerate that produces commercial, military, and executive aircraft and provides aeronautical services....
has entered into a strategic agreement with AEL Sistemas S.A (“AEL”), a wholly owned subsidiary of Elbit Systems. The two companies were yet to define the specific programs to be pursued but, according to officials from the two companies, the main goals of the cooperation were be the expanding of joint activities in the area of unmanned aircraft systems, including the anticipated creation of a jointly owned company, with majority participation of Embraer D&S. One of the primary goals of the joint venture will be to promote the introduction and use of Elbit Systems Hermes 450 UAV in the service of the Brazilian Air Force
Brazilian Air Force
The Brazilian Air Force is the air branch of the Brazilian Armed Forces and one of the three national uniformed services. The FAB was formed when the Army and Navy air branch were merged into a single military force initially called "National Air Forces"...
.
ColombiaColombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
- In March 2010, a $28 million contract for Hermes 450 UAVs was suspended by the Colombian government after media reports based on anonymous letters alleged that Colombian officials had been bribed. The Israeli Ministry of Defense investigated and found that the letters likely came from Israel Aerospace Industries, a competitor that lost the tender. The incident led to a review of the regulations governing overseas competition between Israeli defense companies.
Divestment
On September 3rd 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 barrierIsraeli West Bank barrier
The Israeli West Bank barrier is a separation barrier being constructed by the State of Israel along and within the West Bank. Upon completion, the barrier’s total length will be approximately...
. At a press conference to announce the decision, Minister of Finance
Minister of Finance (Norway)
- 1st Ministry :- 5th Ministry :- Ministry of Finance, Trade and Customs :- Ministry of Finance and Customs :- Ministry of Finance :...
Kristin Halvorsen
Kristin Halvorsen
Kristin Halvorsen is a Norwegian socialist politician and was the Minister of Finance from 17 October 2005 until 20 October 2009. She is now the Minister of Education in Stoltenberg's second cabinet....
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.
In January 2010, Danske Bank
Danske Bank
Danske Bank is a Danish bank. The name literally means "Danish Bank" It was founded 5 October 1871 as Den Danske Landmandsbank, Hypothek- og Vexelbank i Kjøbenhavn ....
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'. The Danish financial watchdog Danwatch has also placed Elbit on its ethical blacklist
Blacklist
A blacklist is a list or register of entities who, for one reason or another, are being denied a particular privilege, service, mobility, access or recognition. As a verb, to blacklist can mean to deny someone work in a particular field, or to ostracize a person from a certain social circle...
, and one of Denmark's largest pension fund
Pension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
administrators PKA Ltd announced it will no longer consider investing in Elbit, stating "The ICJ
In March 2010, a Swedish pension fund not wanting to be associated with companies violating international treaties, boycotted Elbit Systems for being involved in constructing the Israeli West Bank security fence.
See also
- Economy of IsraelEconomy of IsraelThe economy of Israel is a technologically advanced market economy, including a rapidly-developing high-tech and service sectors. As of 2010, Israel has the 24th largest economy in the world, and ranks 15th among 169 world nations on the UN's Human Development Index, which places it in the category...
- Science and technology in IsraelScience and technology in IsraelScience and technology in Israel is one of the country's most developed sectors. The percentage of Israelis engaged in scientific and technological inquiry, and the amount spent on research and development in relation to gross domestic product , is amongst the highest in the world...
- Military-Industrial ComplexMilitary-industrial complexMilitary–industrial complex , or Military–industrial-congressional complex is a concept commonly used to refer to policy and monetary relationships between legislators, national armed forces, and the industrial sector that supports them...