Units of defense electronics developer Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) and of Israel Aerospace Industries Ltd. (IAI) have won subcontracting roles in a deal to supply airborne imagery intelligence systems to Turkey's Air Force.
The subsidiaries are Elbit Systems Electro-Optics Elop Ltd. (Elbit Systems Electro-Optics) and ELTA Systems Ltd. (ELTA). The deal is worth $87 million to Elbit Systems Electro-Optics, and $54 million to ELTA, for a combined $141 million. The project's prime contractor will Turkish defense firm Aselsan.
Deliveries under the contract will be made over a four-year period.
The firms will supply the Turkish Air Force with combined airborne IMINT (imagery intelligence) systems. Elbit Systems Electro-Optics and ELTA are expected to provide the required performance bonds for the project in the next few weeks.
Elbit Systems Electro - Optics general manager Haim Rousso said, "We are very proud that the Turkish Air Force, one of the most advanced and modern in the world, has chosen our reconnaissance system. The system is based on a well-developed and proven solution, which has already been chosen by several leading Air Forces and has recorded thousands of successful operational flight hours in severely demanding conditions."
IAI subsidiary ELTA is a defense electronics company which develops intelligence surveillance, target acquisition and reconnaissance (ISTAR), early warning and control, and home-land security applications.
IAI has previously participated in a $250-300 million Turkish Ministry of Defense tender for a reconnaissance satellite for the Turkish Air Force.
Shares in Elbit Systems closed Wednesday on Nasdaq at $43.46, down 1.56%, to give a market cap of $1.83 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on December 25, 2008
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