JERUSALEM (Reuters) - State-owned Israel Aerospace Industries (IAI) [ISRAI.UL] said on Sunday it signed a deal with the FIMI private equity fund to invest in IAI’s subsidiary ImageSat.
FIMI will invest $40 million in ImageSat (ISI), a commercial provider of satellite imagery services, for 53.6 percent of ISI’s capital, IAI said.
Under terms of the deal, ImageSat will acquire a new high resolution observation satellite, the EROS-C, and on the closing date it will pay $35 million as part of ISI’s debt repayment.
FIMI will receive preferred shares in which a profit sharing mechanism will be operated between IAI and FIMI.
Completion of the deal is subject to the approval of the Defence Ministry and the anti-trust authority.
“Space continues to be at the heart of IAI’s business strategy. The combining of forces with FIMI will create synergy between technological and business capabilities,” said IAI CEO Joseph Weiss.
Reporting by Steven Scheer; Editing by Tova Cohen