Teledyne Technologies has reached a definitive agreement to acquire thermal imaging and night vision specialist FLIR Systems under a cash and stock transaction valued at $8 billion, the companies announced today. Approved by the boards of both companies, the transaction is anticipated to close by midyear once it has cleared all the necessary regulatory approvals and closing conditions.
Under the agreement, FLIR stockholders will receive $28 per share in cash and 0.0718 shares of Teledyne common stock for each FLIR share. Teledyne has arranged a $4.5 billion, 364-day credit commitment to help fund the transaction and refinance existing debt and said it expects to have permanent financing before closing.
While noting that proprietary sensor technologies remain at the core of both companies, Teledyne executive chairman Robert Mehrabian added, “Our technologies and products are uniquely complementary with minimal overlap, having imaging sensors based on different semiconductor technologies for different wavelengths."
FLIR chairman Earl Lewis added the complementary technologies will provide “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.”