Teledyne Technologies Incorporated has announced the successful acquisition of FLIR Systems.
Teledyne Technologies is a leading provider of sophisticated digital imaging products and software, instrumentation, aerospace and defense electronics, and engineered systems.
FLIR is a world leader in the design, manufacture and marketing of thermal imaging infrared cameras, which among other uses, are utilised at waste and resource recovery facilities across the globe for fire prevention.
At each of the respective company’s special meeting of stockholders held 13 May, the stockholders approved and adopted merger proposals related to the Agreement and Plan of Merger dated 4 January.
FLIR will now be included in Teledyne’s Digital Imaging segment and operate under the name Teledyne FLIR.
“We appreciate the support from our stockholders, and I am delighted to welcome FLIR to the Teledyne family,” Teledyne Executive Chairman Robert Mehrabian said.
“As a combined company, Teledyne FLIR will uniquely provide a full spectrum of imaging technologies and products spanning X-ray through infrared and from components to complete imaging systems.
“Teledyne FLIR will also provide a complete range of unmanned systems and imaging payload across all domains ranging from deep sea to deep space.”
Under the terms of the agreement, FLIR stockholders received $28.00 per share in cash and 0.0718 shares of Teledyne common stock for each FLIR share, which implies a total purchase price of approximately $57.40 per FLIR share based on Teledyne’s closing price on 13 May.
The aggregate consideration for the transaction was approximately $8.2 billion, including net debt.
Previously, Teledyne secured all permanent cash financing for the transaction with a weighted average borrowing cost of less than two per cent.
Teledyne expects the acquisition to be immediately accretive to earnings, excluding transaction costs and purchase price accounting, and accretive to GAAP earnings in the first full calendar year following the acquisition.
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