Teledyne to acquire FLIR in a $8 billon deal
On Jan 4, 2021, Teledyne Technologies Incorporated and FLIR Systems have entered into a definitive agreement under which Teledyne will acquire FLIR in a cash and stock transaction valued at approximately $8.0 billion USD.
Under the terms of the agreement, FLIR stockholders will receive $28.00 USD per share in cash and 0.0718 shares of Teledyne common stock for each FLIR share.
Teledyne expects the acquisition to be immediately accretive to earnings, excluding transaction costs and intangible asset amortization, and accretive to GAAP earnings in the first full calendar year following the acquisition.
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.
The acquisition benefits:
- Flir fills a gap in the Teledyne portfolio, specifically low cost thermal detectors.
- The combination of Teledyne and Flir covers a broad set of complimentary markets. Currently the vertical markets each company occupies areland and sea markets (FLIR) and space and ocean floors (Teledyne).
- When combined with Flir’s sales, Teledyne expects to expand its 2020 proforma revenue to $5 billion. This will make it’s digital imaging business the company’s largest segment generating sales.
Teledyne expects the acquisition to boost earnings immediately, despite transaction costs and intangible asset amortization. It projects higher GAAP earnings in the first full year following the deal.
Impacts to the customer:
- With our new partner’s platform and complimentary technologies, we will be able to continue this trajectory providing our employees, customers and stockholders even more momentum for growth.
- Together, we will offer a uniquely complimentary end-to-end portfolio of sensory technologies for all key domains and applications across a well-balanced, global customer base.
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By Mostafa Mansour