Defense giant Elbit Systems Ltd., has agreed to buy Nice Systems’ cyber solutions and intelligence division for $158 million as the company seek to boost its presence in the fast-growing cybersecurity market. Elbit Systems will merge the acquired cyber division with its recently built subsidiary Cyberbit Ltd. 

The deal, which subject to certain conditions and terms, is expected to close in the early third quarter of this year. Under the agreement, Nice Systems will receive $117.9 million in cash at the time of the closing, an additional amount of up to $40 million will be paid as an earn-out based upon the future performance of the acquired assets.

Bezhalel Machlis, CEO Elbit Systems, said in a telephone interview: “We believe cyber will be a major growth engine for Elbit and that there is a unique opportunity for us to be big in this market,” and also added this: “Combining with Nice\’s business will allow us to create synergies both by increasing our customer base and by improving our product portfolio.”

Elbit’s stocks climbed 2 percent to 301.70 shekels at the close of trading in Tel Aviv Stock Exchange, while Nice Systems dropped 0.8 percent. 

Nice’s stock nearly doubled in the past few months as the company boost revenue by tapping into new market- data analytics, the sale of the cyber security division was part of an strategy to focus more on what’s really good for the company. Cyber security is taking huge attention these days, demand for cyber security products is soaring high as big companies such as banking giant JP Morgan Chase & Co and Sony Picture Entertainment have been hit with hacks and data breaches. 

Founded in 1966, Elbit Systems Ltd. is an Israel-based defense company engaged in a wide range of programs throughout the world, it operates in the ares of aerospace, land, naval systems, command, communications, computers, intelligence surveillance and reconnaissance (C4ISR), unmanned aircraft systems, advanced electro-optics, EW suites and communications systems. The company has approximately 12,000 employees, the majority of whom are engaged in engineering and R&D developing  new technologies for defense, homeland security, commercial aviation applications and other technical areas. Elbit Systems is Israel\’s biggest publicly traded defense company, it shares are traded on the Tel Aviv Stock Exchange and United States (NASDAQ).

Nice Systems (NASDAQ: NICE) is a leading provider of software solutions that empower organizations to capture, analyze and apply in real-time, and insights from both structure and unstructured data. The company’s software solutions are used by over 25,000 organizations in more than 150 countries, including 80 of the Fortune 100 top companies.