FLIR Systems To Be Acquired by Teledyne for $US8B
FLIR Systems and Teledyne Technologies have entered into a definitive agreement under which Teledyne will acquire FLIR in a cash and stock transaction valued at approximately $US8.0 billion, a 40 per cent premium on FLIR’s current stock price.
“FLIR’s commitment to innovation spanning multiple sensing technologies has allowed our company to grow into the multi-billion-dollar company it is today,” said Earl Lewis, chairman of FLIR.
“With our new partner’s platform of complementary technologies, we will be able to continue this trajectory, providing our employees, customers and stockholders even more exciting momentum for growth. Our board fully supports this transaction, which delivers immediate value and the opportunity to participate in the upside potential of the combined company.”
The transaction, which has been approved by the boards of directors of both companies, is expected to close in the middle of 2021 subject to the receipt of required regulatory approvals, approvals of Teledyne and FLIR stockholders and other customary closing conditions.
“At the core of both our companies is proprietary sensor technologies,” said Robert Mehrabian, executive chairman of Teledyne. “Our business models are also similar: we each provide sensors, cameras and sensor systems to our customers. However, our technologies and products are uniquely complementary with minimal overlap, having imaging sensors based on different semiconductor technologies for different wavelengths.
“For 2 decades, Teledyne has demonstrated its ability to compound earnings and cash flow consistently and predictably. Together with FLIR and an optimized capital structure, I am confident we shall continue delivering superior returns to our stockholders.”
Jim Cannon, president and CEO of FLIR, said FLIR was excited to join forces with Teledyne.
“Together, we will offer a uniquely complementary end-to-end portfolio of sensory technologies for all key domains and applications across a well-balanced, global customer base,” Cannon said. “We are pleased to be partnering with an organization that shares our focus on continuous innovation and operational excellence, and we look forward to working closely with the Teledyne team as we bring our two companies together to capitalize on the important opportunities ahead.”