Elron Electronic Industries

Elron Electronic Industries Ltd.

Company type	Public (TASE: ELRN)
Industrie	Medical technology, Telecommunications, Clean technology, Semiconductors, Information Technology
Gegründet	1962
Gründer	Uzia Galil
Hauptsitz	Haifa , Israel
Key people	Arie Mientkavich (Chairman), Ari Bronshtein co-CEO, Zvika Slovin co-CEO
Website	www.elron.com

Elron Electronic Industries (Nasdaq: ELRN and TASE: ELRN) is a technology holding company based in Haifa Israel; since 1962 the company has been involved in setting-up, funding and developing over 30 companies and is considered one of the foundation stones of the high-tech industry in Israel. The company’s sectors of interest include: Clean technology, software, semiconductors, medical technology, telecommunications, defence and aerospace. Today, the combined annual revenues of the companies established by Elron are approximately $5 billion.

History

Early Years

Elron was founded in 1962 by Uzia Galil, with the support of Dan Tolkowsky of the Discount Investment Corporation. Uzia Galil graduated from the Technion – Israel Institute of Technology in 1947, and in 1948 joined the Israel Navy as an Officer responsible for maintaining its Radio systems. In 1952 Uzia was sent to study for a Masters degree in Electrical Engineering at Purdue University in the United States. During his studies in the United States, he worked at Motorola‘s research lab and was part of a team that developed of one of the world's first colour televisions. But in 1954 he had to return to Israel to complete another 4 years of service in Navy, which financed his studies.

Founding Elron

Uzia Galil short experience working for Motorola in the United States exposed him to the technology industry and he decided to establish Israel‘s first high tech Startup company. He started the company, while still serving in Navy, in a friend’s (Benjamin Sandller) flat in Haifa , later joined by another friend (Gideon Kirshner), who was a teacher at the Haifa Technical High-School, and worked with them in his spare time. The company’s first products were measurement instruments for medical and electronic applications. In 1958 Uzia left the Navy, however the company did not generate enough revenues and he got a job at the Physics laboratory of the Technion; while there Moshe Arens, who was Professor of Aeronautics at the time, introduced him to Dan Tolkowsky. Dan, who was fascinated by Uzia's ideas, managed to convince the board of Discount Investment Corporation to provide the capital required to properly fund the company. Elron was officially formed in 1962 with an initial capital of $US 160,000, and within 3 years generated annual revenues of $1 millions.

First join venture – Elbit Computers Ltd.

In 1966, Shimon Peres, who at the time was the Deputy Defence Minister, visited Elron and Uzia convinced him to establish a new company that will develop Minicomputers for defence applications. The new company, initially called Elbit Computers, was a joint venture with the Israel's Ministry of Defence and Elron (each holding 50% of the company). The company launched its first product in 1967 the Elbit-100 Minicomputer. The company evolved through the years to become the multinational defence electronics company – Elbit Systems (Nasdaq: ELBT).

Founding Elscint

In 1969, Uzia convinced a talented engineer, Avraham Suhami, who just completed his PhD at the Technion, to join him and start a new company that will focus on the developed of medical and scientific solutions, a new company - Elscint, a contraction of the words "electronic" and "scientific", was established again with the support of Dan Tolkowsky. The company developed medical imaging equipment, such as MRI and CT scanners. In 1972 Elscint was the first Israeli company to have an initial public offering on NASDAQ. By 1996, Elscint's revenues reached $311 million.

Growth during the 1980’s 1990’s

In 1981 Elron was invloved in the establishment of a company that will later become Orbotech (Nasdaq: ORBK) a manufacturer of equipment for the Printed Circuit Board (PCB), TFT& LCD Display assembly industries.

In 1983 Uzia met by chance, while waiting for a flight in the lounge of Ben Gurion International Airport, Levy Gerzberg an academic from Stanford University, who in 1981 founded Zoran Corporation (Zoran stands for "silicon" in Hebrew), which develops digital signal processing solutions. At the time Levy Gerzberg was looking for additional funding, which Elron was able to provide. In 1995 Zoran had an initial public offering on NASDAQ (Nasdaq: ZRAN) and today is the leading provider of complete OEM solutions for consumer electronics products, such as DVD and digital cameras, with annual revenues of over $500 million in 2007.

In 1996, Elbit spun off into three independent companies:

• Elbit Medical Imaging Nasdaq: EMITF - but during 1999 and 2000 both Elscint and Elbit Medical Imaging sold their imaging activities to General Electric Medical Systems NYSE: GE and to Picker (now part of Philips Medical Systems, NYSE: PHG for approximately $600 million.
• Elbit Systems – Created as the defence electronics arm of Elbit and had an Initial public offering on NASDAQ.
• Elbit - which focused on communications activities and in 1999 led the consortium that founded Partner Communications Company Ltd., Israel's first GSM operator Nasdaq: PTNR. In 2002 Elbit was merged into Elron. Elron sold its shares in Partner during 2003-2006 for approximately $160 million.

In 1998 Given Imaging (Nasdaq: GIVN), a developer of a video capsule for medical diagnostics, was founded.

Current Holdings

Elron currently has investments in about 18 different companies in the fields of: Medical technology, Clean technology, Telecommunications, and Semiconductors.

Former holdings and spin-offs

• Elbit Systems – defence and aerospace group
• Elscint – an early developer of CT and MRI solution
• Elbit Medical Imaging
• Elbit Vision Systems - manufacture of computerised vision and imaging systems for in-line inspection and monitoring of production processes
• Zoran Corporation – a fables semiconductor company specialising in solutions for digital TV and DVD products
• NetManage – a software company founded in 1990 and sold in 2008 to Micro Focus International
• Partner Communications Company Ltd. – a mobile and fixed line operator in Israel (operating under the Orange brand name)
• Given Imaging - a developer of a video capsule for medical diagnostics
• NetVision – a leading Internet and Telephony service provider in Israel
• Orbotech - a manufacturer of equipment for the Printed Circuit Board (PCB), TFT& LCD Display assembly industries
• Elron Telesoft - a software provider for telecommunication operators sold to ECtel of the ECI Telecom group in 2005

See also

• Silicon Wadi
• List of Israeli companies quoted on the Nasdaq

External links

• Elron Electronic Industries