Ashot Ashkelon Industries Ltd. (TASE:ASHO) entered into an agreement to acquire Industrial development company (1996) IDC Ltd. for ILS 45.6 million from shareholders on April 18, 2024. The consideration of ILS 40 million to be paid in cash and 235,724 ordinary shares of the company. The financing of the purchase will be done through the company's equity, current cash flow and the financial credit sources available at the time of completion of the transaction.

The company will examine the financing of the transaction through the issuance of capital. The aforementioned purchase is in line with the company's goals and business strategy, which also includes growth from acquisitions of companies whose activities are synergistic to the company's activities. In the company's estimation, the purchase of IDC will allow the company to expand and strengthen its activities with the Ministry of Defense, including the expansion of the portfolio of products and solutions provided, as well as the expansion of the activities of The company in additional civil fields beyond the aviation field the company currently operates in.

The acquisition of IDC will allow, among other things, a significant strengthening of the company's development and engineering capabilities. For the year ended December 31, 2023, IDC has Revenue of ILS 48.021 million, Operating profit of ILS 16.959 million and Net profit of ILS 13.586 million. Completion of the transaction is subject to the existence of acceptable conditions precedent, the main of which are the receipt of the approval of the commissioner of competition, the receipt of the stock exchange's approval for the trading of the company's shares that constitute the consideration in the shares and the receipt of approvals from third parties as detailed in the purchase agreement.

The parties will work to achieve the conditions precedent within 60 days from the date of signing the agreement (until June 7, 2024), when this date can be extended by an additional 120 days (until October 16, 2024). If the conditions are not met by the end of the said period, each of the parties may Cancel the agreement by written notice to the other party. The date of completion of the transaction" will take place no later than five (5) business days from the date on which all the conditions pending in the purchase agreement will be met.