Israeli private equity firm FIMI Opportunity Funds has entered into an agreement to acquire 53.6% of Israel Aerospace Industries (IAI) subsidiary ImageSat International (ISI), it was announced on 6 November.
FIMI will invest USD40 million into ISI, and in turn will purchase the new EROS C observation satellite from IAI. At the point of the transaction closing date, ISI will pay IAI USD35 million to cover part of an outstanding shareholder loan.
The deal is subject to approval from the Israeli Ministry of Defence and the country’s antitrust authority. Preferred stock will be allotted to FIMI with a distribution agreement between the private equity firm and IAI.
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