Microsoft to buy 3DV Systems from Elron

Microsoft will reportedly pay about $34 million for the digital camera developer.

IDB Holding Corp. (TASE:IDBH) unit Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE:ELRN) today announced that it had entered into an agreement for the sale of 3DV Systems Ltd. to a third party.

Sources inform "Globes" that the third party is Microsoft who will pay about $34 million for 3DV systems which develops digital cameras. Elron holds 43% of 3DV systems both directly and through its subsidiary Rafael Development Corporation Ltd (RDC).

Elron said, "Pursuant to the terms of the definitive agreement, following the payment of certain expenses, proceeds to be distributed to each of Elron and RDC is expected to be up to approximately $3 million and $4 million, respectively. Elron currently expects to record a gain of up to approximately $5 million."

The transaction is expected to close in the second quarter of 2009.

Established in 1996, 3DV systems has raised an estimated $38 million from investors.

Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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