Teledyne acquires FLIR Systems in an $8 billion deal

The two companies both offer proprietary sensor technologies and have similar business models: they provide sensors, cameras and sensor systems

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Teledyne Mehrabian
Robert Mehrabian Executive Chairman Teledyne Technologies Incorporated (Image: www.teledyne.com)

Teledyne Technologies Incorporated e FLIR Systems have entered into a definitive agreement under which Teledyne will acquire FLIR in a cash and stock transaction valued at approximately $8 billion.

As part of the transaction, Teledyne is committing $4.5 billion to finance the transaction and refinance certain existing debt. The group, which operates in the Digital Imaging, Instrumentation, Engineered Systems and Aerospace & Defense Electronics sectors, expects the acquisition to immediately increase earnings.

"At the core of both our companies are proprietary sensor technologies and similar business models: we supply sensors, cameras and sensor systems. However, our technologies and products are complementary, having imaging sensors based on different semiconductor technologies for different wavelengths," said Robert Mehrabian, executive chairman of Teledyne. "For two decades, Teledyne has demonstrated its ability to combine earnings and cash flows in a consistent and predictable manner. Together with FLIR and an optimized capital structure, I am confident that we will continue to deliver superior returns to our shareholders."

"Our commitment to innovation in sensing technologies has enabled us to grow into a multi-billion dollar company," said Earl Lewis, President of FLIR. "With our new partner's platform of complementary technologies, we will be able to continue this trajectory, providing our employees, customers and shareholders with even more exciting momentum for growth." Jim Cannon, President and CEO of FLIR, was also enthusiastic: "With Teledyne, we will offer a unique and complementary end-to-end portfolio of sensor technologies across all key domains and applications to a global customer base."

The transaction, which has been approved by the boards of directors of both companies, is expected to close in mid-2021, subject to receipt of the required regulatory approvals.

 

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