Initiates Process to Change Name to Senstar Technologies Ltd.
Magal Security Systems, Ltd. a leading international provider of comprehensive physical, video, and access control security products and solutions, as well as critical site management, announced today the successful completion of its planned divestiture of the Company’s Integration Solutions Division and that it has initiated steps to change its name to Senstar Technologies Ltd.
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Divestiture of Integration Solutions
As previously announced, Aeronautics Ltd., a subsidiary of RAFAEL Advanced Defense Systems Ltd., has acquired the Company’s Integration Solution Division in a share and asset purchase agreement on June 30, 2021. Magal received $35 million in cash at closing on a cash-free, debt-free basis subject to post-closing working capital and other customary adjustments. The share and asset purchase agreement contains standard representations, warranties, covenants and indemnification provisions. As part of the acquisition, Aeronautics is acquiring Magal’s facility in Yehud, Israel.
Dror Sharon, Chief Executive Officer of Magal, commented, “The closing of this transaction directly supports our strategy of prioritizing opportunities to provide technologically-rich products, solutions and related services in our key verticals of energy, logistics, critical infrastructure and correctional facilities. Operating as a pure product solutions company will increase visibility into our future performance and provide us with incremental opportunities to deliver additional shareholder value. As a standalone business, Senstar has a track record of growth and profitability. We are executing a growth agenda that will leverage that success and scale the business to capture a meaningful share of new market opportunities. Importantly, our balance sheet is stronger post-divestiture and provides us with the flexibility and capacity to invest for organic growth and selectively pursue acquisitions.”
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Mr. Sharon added, “The Integration Solutions Division has a nearly 50-year history of delivering tremendous value to its customers through project-oriented offerings. We commend the division’s leadership team on their accomplishments and commitment to customers worldwide. As an standalone company under Aeronautics Group, the division is more appropriately aligned with the industries that Aeronautics serves and will be better positioned to continue their success.”
Name Change to Senstar Technologies Ltd.
In connection with the completion of the divestiture and the Company’s desire that its name and brand will echo its focus on its products division, the Company announced that it plans to change its name to Senstar Technologies Ltd. and starting July 1, 2021 to rebrand its activities under the brand name Senstar Technologies. The name change is subject to approval by shareholders.
Mr. Sharon concluded, “Looking ahead, we are singularly focused on developing industry-leading technology solutions for the security industry through our Senstar brand. Senstar is synonymous with quality, innovation and reliability, and we plan to leverage that reputation and name recognition by effecting/implementing a corporate name change and rebranding as Senstar Technologies, Ltd..”
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