TEL AVIV, Feb 12 (Reuters) - Elbit Vision Systems Ltd , an Israel-based provider of machine vision inspection technology for textile fabrics, said on Monday it will be acquired by Swiss firm Uster Technologies AG for $3.40 a share.
Uster will pay a 16.8 percent premium to EVS's closing price on Feb. 9, which corresponds to an enterprise value of $32 million.
The acquisition has been approved by the boards of both companies and is subject to approval by the general meeting of EVS shareholders, which is expected to be obtained in March.
The deal is expected to be completed in the second quarter.
Uster, a provider of products for quality measurement and certification for the textile industry, said EVS technology will offer its clients the potential for further automation.
EVS CEO Sam Cohen said his company's revenues have remained largely flat in the last three years.
"As a result, the management of EVS has come to the conclusion that given the current conditions of the industries in which we operate and the capital markets, our ability to continue to increase shareholder value is extremely challenging and uncertain as a stand-alone entity," he said. (Reporting by Tova Cohen; Editing by Steven Scheer)