YEHUD, Israel, July 1, 2021
/PRNewswire/ -- Magal Security Systems, Ltd. (NASDAQ:
MAGS), 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.
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."
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.."
About Magal Security Systems Ltd.
Magal is a leading international provider of comprehensive
physical, video, and access control security products and
solutions, as well as site management. Over the past 45 years,
Magal has delivered its products as well as tailor-made security
solutions and turnkey projects to hundreds of satisfied customers
in over 80 countries under some of the most challenging conditions.
On February 7, 2021, Magal announced
the sale of its project division in an asset and shares purchase
agreement to Aeronautics Ltd. for approximately $35 million. The closing occurred on June 30, 2021. Following the closing, the Company
will focus entirely on security products, both software and
hardware, and product-based solutions, with a highly visible and
scalable business model through its Senstar brand.
About Senstar
Senstar is a global leader in innovative perimeter intrusion
detection systems (PIDS) and intelligent video management (VMS)
with advanced video analytics and access control, offering a
comprehensive suite of innovative, intelligent, integrated security
technologies. Senstar offers a comprehensive suite of proven,
integrated technologies that reduce complexity, improve performance
and unify support. Senstar, which products are found in thousands
of sites including critical infrastructure, logistics, corrections
and energy, has been protecting high risk assets for more than
40 years. For more information, visit the Company's website at
www.senstar.com.
Forward Looking Statements
This press release contains forward-looking statements, which
are subject to risks and uncertainties. Such statements are based
on assumptions and expectations which may not be realized and are
inherently subject to risks and uncertainties, many of which cannot
be predicted with accuracy and some of which might not even be
anticipated. Future events and actual results, financial and
otherwise, may differ from the results discussed in the
forward-looking statements. A number of these risks and other
factors that might cause differences, some of which could be
material, along with additional discussion of forward-looking
statements, are set forth in the Company's Annual Report on Form
20-F filed with the Securities and Exchange Commission. In
addition, there is uncertainty about the impact of the spread of
the COVID19 virus and its effect on the Company's operations, the
demand for Company's products, global supply chains and economic
activity in general.
For more information:
Magal Security Systems Ltd.
Diane Hill
+972-3-539-1421
diane.hill@senstartechnologies.com
www.senstartechnologies.com
IR Contact:
Brett
Maas
Managing Partner
Hayden IR
+1 -646 -536 -7331
Brett@HaydenIR.com
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SOURCE Magal Security Systems, Ltd.