Goleta tech giant FLIR Systems, Inc. announced Monday that it is being acquired by Teledyne Technologies Incorporated in a cash-and-stock transaction valued at approximately $8 billion.
“We could not be more excited to join forces with Teledyne through this value-creating transaction,” said Jim Cannon, president and CEO of FLIR. “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.”
Teledyne anticipates the acquisition to immediately increase earnings, excluding transaction costs and intangible asset amortization, in the first full calendar year following the purchase.
In the acquisition, FLIR stockholders will receive $28 per share in cash as well as 0.0718 shares of Teledyne common stock for each FLIR share purchased, implying a total purchase price of $56 per FLIR share.
The transaction reflects a 40% premium for FLIR stockholders based on the company’s 30-day volume weighted average price as of Dec. 31, 2020.
Teledyne also has arranged a $4.5 billion, 364-day credit commitment to fund the transaction and refinance certain existing debt, and anticipates funding the transaction with permanent financing prior to closing.
Net leverage at closing is expected to be around 4.0x pro forma EBITDA, earnings before interest, taxes, depreciation, and amortization, with leverage declining less than 3.0x by the end of 2022.
“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.”
FLIR was founded in 1978, and is a global-leading industrial company that designs, develops, manufactures, markets, and distributes technologies that enhance perception and awareness. It produces thermal imaging, visible-light imaging, video analytics, and advanced threat-detection systems, among others.
Teledyne is a leading provider of digital imaging products and software, aerospace defense electronics, and engineered systems.
Its products include digital imaging sensors, cameras and systems within the visible, infrared and X-ray spectra, electronic test and measurement equipment, and aircraft information management systems, among others.
“At the core of both our companies is proprietary sensor technologies,” said Robert Mehrabian, executive chairman of Teledyne. “However, our technologies and products are uniquely complementary, with minimal overlap, having imaging sensors based on different semiconductor technologies for different wavelengths.
“Together with FLIR and an optimized capital structure, I am confident we shall continue delivering superior returns to our stockholders.”
— Noozhawk staff writer Jade Martinez-Pogue can be reached at jmartinez-pogue@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.
