The Fimi Fund acquires E&M computing for NIS 450 million from the Shahak family

The Fimi Fund, managed and controlled by Yishai Davidi, has signed an agreement to acquire control of E&M computing for NIS 450 million from the Shahak family and other shareholders. The transaction reflects a price of NIS 16.25 per share, ie a company value of NIS 720 million, which is 10% lower than the opening price of the share in trading, although the share has risen by 32% since the beginning of January 2021.
E&M Computing, established in 1984 and issued in 1993, is active in the field of computer infrastructure. The company provides business and technological computing solutions for computing infrastructure (software and hardware) and applications for companies and government bodies. E&M Computing provides through the IT division, advanced technological solutions and consulting in various cyber fields, in the fields of integrated cloud technologies (Cloud). In addition, it develops digital software products that combine complex applications and interfaces in mobile and the Internet.
E&M Computing also specializes in OEM operations in Israel, the United States, and the United Kingdom, which includes technical characterization services, engineering design, loading and automated testing of naughty computer systems. E&M Computing's clients include government bodies and leading companies in Israel and abroad.
E&M Computing, which employs 1,000 people in Israel and abroad, owns 22 subsidiaries, 3 production sites in Israel: Rosh HaAyin, Haifa and Ashdod, and 2 other production sites in Boston and Reading in England.
E&M Computing earned NIS 29 million in a turnover of NIS 995 million in January-September 2020, compared with a profit of NIS 24 million in a turnover of NIS 1.024 billion in the corresponding period in 2019. The company generated a cash flow operating profit (Ebitda) of NIS 68 million in January-September 2020, compared to a cash flow operating profit of NIS 62 million in the corresponding period in 2019.
The company's cash flow operating profit for the 12 months ended September 2020 amounted to NIS 97 million. The equity of Emet Computing as of the end of September 2020 amounted to NIS 300 million and financed 38% of its assets. The company's net financial liability amounted to NIS 120 million, so that the company is acquired at an operating value of NIS 840 million, which represents a multiplier of operating value to a cash flow operating profit of 8.6.