December 26, 2021
Euclid is developing antenna rotators for UAV tracking systems, which is a new field for it. Euclid’s CEO Guy Clap holds all of its shares and will continue to manage it for the next two years. “We believe that Euclid’s revenues will continue to grow”
In the picture above: control systems and rotation of antennas made by Euclid
Orbit from Netanya announced this morning to the stock exchange that it has signed a memorandum of understanding for the acquisition of Euclid Systems Engineering from the locality of Bat Hefer, for a total amount of NIS 14 million. Euclid is engaged in the development of antenna rotators for tracking systems in the field of drones, skimmers, observation systems and radars. An antenna (positioning system) is the mechanism that is responsible for dynamically changing the angle of the tracking system depending on the changing location of the transmitter and receiver, for example in communication between an airplane and a satellite or between a glider and a ground operator.
Euclid was founded in 2006 by CEO and owner Guy Clap. According to the acquisition agreement, he will continue to serve as the company’s CEO for at least the next two years. The company specializes in solutions for unmanned aerial vehicles such as skimmers and drones, which require more compact and accurate tracking systems. The company’s customers include Elbit, Rafael, Aeronautics, IAI, Gilat, Verint, the IDF and the Ministry of Defense. Euclid has a subsidiary in the United States. In 2020, its sales totaled NIS 4.1 million.
Orbit is entering new areas
The transaction will be executed in two installments: a payment of NIS 6.5 million at the date of completion of the transaction, and another NIS 7.5 million will be paid over two years in accordance with milestones. For Orbit, the acquisition marks an intrusion into a new market. The company is currently engaged in satellite communications systems for ships, aircraft and vehicles. According to Orbit CEO Daniel Eshchar, Euclid’s portfolio will allow the company to provide solutions for UAVs, radars and observation systems as well. “This deal is in line with Orbit’s strategy for organic and inorganic growth in the company’s core areas, while expanding its product portfolio and solutions to other content worlds. We believe that in the coming years the volume of income and profitability rates in the acquired company will continue in the growth trend. ”
Following the announcement, Orbit’s share on the Tel Aviv Stock Exchange rose by about 2% and is now traded at a market value of about NIS 393 million. Orbit provides mission-critical and commercial communications systems for applications at sea, on land, in the air and in space. These include portable satellite communication systems, tracking and telemetry solutions and systems for managing internal communication in aircraft. The company is controlled by the Pimi Fund (31.4%) and employs about 170 people. In the first half of 2021, its sales totaled about $ 24.5 million.
Posted in categories: News, Mergers and Acquisitions, Skimmers, Aviation and Security
Posted in tags: Orbit, Euclid, Tracking Systems
