Teledyne to acquire FLIR for US$8B
Teledyne Technologies Inc. will acquire FLIR Systems Inc. in a cash and stock transaction valued at approximately US$8.0 billion, according to a joint statement issued by the companies this week.
Under the terms of the agreement, FLIR stockholders will receive US$28.00 per share in cash and 0.0718 shares of Teledyne common stock for each FLIR share, which implies a total purchase price of US$56.00 per FLIR share based on Teledyne’s 5-day volume weighted average price as of Dec. 31, 2020. According to the statement, the transaction reflects a 40% premium for FLIR stockholders based on FLIR’s 30-day volume weighted average price as of Dec. 31, 2020.
“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,” said Robert Mehrabian, executive chairman of Teledyne, in a company statement. “For two 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.”
“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.”
Jim Cannon, president and CEO of FLIR, said, “We could not be more excited to join forces with Teledyne through this value-creating transaction. 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. 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.”
According to the companies, the transaction has been approved by the boards of directors of both companies and is expected to close in mid-2021, pending regulatory approvals and customary closing conditions. Read the full announcement on the FLIR website.