Formula Systems announced that it has partnered up with Israel Aerospace Industries (IAI) to acquire TSG from Ness Technologies Inc., a portfolio company of TRG Management LP. TSG is a subsidiary of Ness and provides C2 systemes, intelligence, homeland security and cybersecurity services to Israel's defense organizations including the Israeli Defense Forces and the Israeli Police. The total purchase price will be $50M in cash and will be split evenly with each of Formula and IAI acquiring 50% stakes for $25M. Formula and IAI will seek to grow TSG through follow-on acquisitions of companies in complimentary areas.
Israel Discount Capital Markets & Invetments Ltd. and Fischer, Behar, Chen, Well Orion & Co. advised Ness on the deal.
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