Teledyne to Acquire FLIR Systems; $8 Billion Cash-and-Stock Deal

Teledyne to Acquire FLIR Systems; $8 Billion Cash-and-Stock Deal

  • Jan 06, 2021

Electronic sensor technology maker Teledyne Technologies has agreed to buy FLIR Systems, best known for its thermal image technology and a hardware provider. The acquisition is a reported cash-and-stock deal valued at approximately $8 billion.

Under terms of the agreement, FLIR shareholders will receive $28 a share in cash and 0.0718 a share of Teledyne common stock for each FLIR share, implying a total purchase price of $56 per FLIR share based on Teledyne’s five-day volume weighted average price as of Dec. 31.

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.

As part of the transaction, Teledyne has arranged a $4.5 billion, 364-day credit commitment to fund the transaction and refinance certain existing debt. Teledyne expects to fund the transaction with permanent financing prior to closing.

“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 Mehradian, Teledyne Executive Chairman, in a prepared 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, OR-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.

Featured

  • Maximizing Your Security Budget This Year

    7 Ways You Can Secure a High-Traffic Commercial Security Gate  

    Your commercial security gate is one of your most powerful tools to keep thieves off your property. Without a security gate, your commercial perimeter security plan is all for nothing. Read Now

  • Protecting Data is Critical

    To say that the Internet of Things (IoT) has become a part of everyday life would be a dramatic understatement. At this point, you would be hard-pressed to find an electronic device that is not connected to the internet. Read Now

  • Mobile Access Adoption

    Smartphones and other mobile devices have had a profound impact on how the world securely accesses the workplace and its services. The growing adoption of mobile wallets and the new generation of users is compounding this effect. Read Now

  • Changing Mindsets

    We have come a long way from the early days of fuzzy analog CCTV systems. During that time, we have had to migrate from analog to digital signals. When IP-based network cameras arrived, they opened a new world of quality and connectivity but also introduced plenty of challenges. Thankfully, network devices today have become smart enough to discover themselves and even self-configure to some degree. While some IT expertise is certainly required, things are much smoother these days. The biggest change is in how fast security cameras and supporting infrastructure are evolving. Read Now

Most   Popular

Featured Cybersecurity

Webinars

New Products

  • Compact IP Video Intercom

    Viking’s X-205 Series of intercoms provide HD IP video and two-way voice communication - all wrapped up in an attractive compact chassis. 3

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols. 3

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file. 3