Elbit Systems has purchased the defence activities of Alcatel Austria, and says it will use the acquisition to expand its operations in the European market.
The Israeli company has already established an Austrian subsidiary, ESL Advanced Information Technology (AIT), which will specialise in command and control systems, software-intensive systems and telecommunications. It has won a $10 million contract to supply command and control systems to the Austrian army.
Elbit, which manufactures avionics and helmet-mounted sights, has in recent years entered the fixed-wing and helicopter upgrade market. It anticipates additional future orders from the Austrian defence ministry.
Joseph Ackerman, Elbit's president, says the establishment of AIT and the acquisition of Alcatel's defence operations is part of a strategy of "providing customer support by establishing technical centres adjacent to its main customers, and of expanding its business through the acquisition of complementary capabilities".
A total of 40% of Elbit's sales come from Europe. Outside Israel, Elbit also owns EFW in Texas and IEI in Alabama and, after its recent merger with Elop, has inherited Kollsman, another US business.
Its 1999 turnover is estimated at $440 million.
Source: Flight International