February 6, 2020 / 7:36 AM / 12 days ago

Elbit Systems to post $55 million acquisition-related expense in fourth-quarter

FILE PHOTO: Logo of Israeli defence electronics firm Elbit Systems is seen at their offices in Haifa, Israel February 26, 2017. REUTERS/Baz Ratner/File Photo

TEL AVIV (Reuters) - Israeli defense contractor Elbit Systems (ESLT.TA) said on Thursday it expects to record an expense of about $55 million in the fourth quarter related to the acquisition by its U.S. subsidiary of the night vision business of L3Harris Technologies (LHX.N).

This expense will be recorded mainly in the “cost of revenues” line item and will be eliminated in the non-GAAP results due to the non-recurring nature of the expense.

Elbit (ESLT.O) will report fourth quarter results in March.

The incorporation of the night vision business “is expected to produce synergies that will enhance the company’s ability to address various market requirements and customer support activities,” Elbit said in a statement.

The company also said it won a six-year, $43 million contract from South Korea’s Hanwha Systems (272210.KS) to equip next generation Korean fighter jets with terrain avoidance systems.

Reporting by Tova Cohen; Editing by Steven Scheer

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