Teledyne Technologies is to buy thermal sensor and camera maker FLIR in an $8bn deal.
The deal, half in cash and half in shares, has the support of both companies and is expected to be completed in the middle of the year.
“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. “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, perhaps surprisingly, is over 40 years old, having started in 1978. However it started expanding into full camera systems and more recently into defence systems. In 2016 bought military drone maker Prox Dynamics to create the Unmanned Aerial Systems business line. This was followed in January 2019 with the acquisition of drone maker Aeryon Labs, and last month, it also bought defence drone maker Altavian. In February 2019, FLIR also bought Endeavor Robotics, the US-based defence spin off from iRobot. The company has also acquired camera makers such as Point Grey.
These are a very different product lines for Teledyne, although it fits well with the company’s defence and space component business. However this may be a suitable area to spin-out a systems business.
“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.