Photo Credit: Courtesy Israel Aerospace Industries
Observation Satellite 'Eros C'

Israel Aerospace Industries (IAI) on Monday announced it had entered into an agreement with FIMI, the largest Private Equity fund in Israel, whereby FIMI will invest $40 million in ImageSat International (ISI)—which provides high resolution satellite earth imagery to facilitate viable data analysis and actionable insights, in exchange for 53.6% of ISI’s share equity.

The agreement stipulates that ISI will buy IAI’s new observation satellite Earth Resources Observation Satellite (EROS), a series of Israeli commercial Earth observation satellites, designed and manufactured by IAI.

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At the transaction closing date, ISI will pay IAI $35 million to cover part of the outstanding shareholder’s loan. The transaction will allot preferred stock to FIMI with a distribution agreement between IAI and FIMI. The deal is pending approval by the Israeli Ministry of Defense and Antitrust Authority.

Joseph Weiss, IAI’s President and CEO said in a statement: “FIMI’s investment in ISI reflects IAI’s strategy to create collaborations with business and financial entities, Spin-off technologies to the civilian sector, and prioritize investments for innovation and technological entrepreneurship. Under the deal, IAI remains a material shareholder of ISI and is expected to benefit also from the incremental value expected to surface as a result of the investment. IAI continually reviews opportunities for civilian applications of military technologies through collaboration with synergetic organizations.”

Gillon Beck, Senior Partner at FIMI, said in a statement: “Satellites in general, including the observation satellites market in which ISI is active and the communication satellites market, in which we are present through our investments in companies such as Gilat and Orbit, offer significant growth potential. ISI has interesting growth engines such as data and algorithm-based products. The collaboration between IAI and FIMI will help ISI soar to new heights in space.”

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