TELEDYNE TO ACQUIRE FLIR SYSTEMS IN $8 BILLION CASH-AND-STOCK DEAL

Jan 5, 2021

Breaking news from Reuters and the investor newsletter TheStreet, we just learned that Electronic sensor technology maker Teledyne Technologies has agreed to buy thermal image provider FLIR Systems in a cash-and-stock deal valued at roughly $8 billion.

Under terms of the agreement, FLIR shareholders will receive a cash and share deal of Teledyne common stock for an approximate purchase price of $56 per FLIR share. The transaction reflects a 40% premium for FLIR stockholders based on FLIR’s 30-day volume weighted average price as of Dec. 31, the companies said. Shares of FLIR were up 20.19% at $52.68 in trading on Monday. 

“At the core of both our companies is proprietary sensor technologies. 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,” Teledyne Executive Chairman Robert Mehrabian said in a statement.

Teledyne said it 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 both companies, is expected to close in the middle of 2021 subject to the receipt of required regulatory approvals.

Sales of Wilsonville, Oregon-based FLIR’s thermal cameras have surged in response to companies’ concerns about the coronavirus pandemic. While its thermal cameras cannot detect or diagnose any type of medical condition, they can identify elevated skin temperatures through non-contact temperature monitoring.

Teledyne said it 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.

Business analysis through Kerrwil Publications estimates that sales in Canada may be $300 Million USD with a focus of about 45% on Marine Instrumentation and 25% Test and Measurement. Estimates are that the company has 200 + employees in Canada.