Swiss company Uster Technologies AG has agreed to buy Israeli company Elbit Vision Systems Ltd. (OTCBB:EVSNF) (EVS) for $32 million. Based in Caesarea, EVS has developed machine vision inspection for textile fabrics and technical webs.
Uster will acquire 100% ownership of EVS, paying $3.40 per share, a 16.8% premium on the closing price of the Israeli company's shares on Friday. The acquisition of EVS by Uster has been approved by the boards of directors of both companies, and is subject to the approval by the general meeting of the shareholders of EVS, which is expected to be obtained in March, 2018.
EVS CEO Sam Cohen said: "We believe that the merger with Uster Technologies is the optimal route for growing the business of the company. Despite our success in turning the company from a loss-making enterprise with onerous levels of debt in 2010 - the year of our management takeover - to a profitable company with no meaningful debt, the last three years have seen revenues remain largely flat. As a result, the management of EVS has come to the conclusion that given the current conditions of the industries in which we operate and the capital markets, our ability to continue to increase shareholder value is extremely challenging and uncertain as a stand-alone entity.”
Uster CEO Thomas Nasiou said: “The acquisition fits perfectly into our vision to be the world’s leading supplier of quality solutions for the textile industry from fiber to fabric. EVS technology will offer Uster's clients the potential for further automation and improvement for increased and sustainable performance.”
Published by Globes [online], Israel business news - www.globes-online.com - on February 12, 2018
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