Teledyne to Acquire FLIR Systems

CEW Flir Teledyne 400

Jan 5, 2020

Teledyne Technologies Incorporated and FLIR Systems, Inc.jointly announced that they have entered into a definitive agreement under which Teledyne will acquire FLIR in a cash and stock transaction valued at approximately $8.0 billion.

Under the terms of the agreement, FLIR stockholders will receive $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 $56.00 per FLIR share based on Teledyne’s 5-day volume weighted average price as of December 31, 2020.  The transaction reflects a 40% premium for FLIR stockholders based on FLIR’s 30-day volume weighted average price as of December 31, 2020. 

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.  Net leverage at closing is expected to be approximately 4.0x adjusted pro forma EBITDA with leverage declining to less than 3.0x by the end of 2022.

Teledyne 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.

“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.”

Approvals and Timing

The transaction, which has been approved by the boards of directors of both companies, is expected to close in the middle of 2021 subject to the receipt of required regulatory approvals, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, approvals of Teledyne and FLIR stockholders and other customary closing conditions.

Source

Related Articles


Changing Scene

  • D.A.D. Sales Announces Bob Holman as New President

    D.A.D. Sales Announces Bob Holman as New President

    D.A.D. Sales is pleased to announce the posting of Bob Holman to President from his previous role as Vice President and Sales Manager. “Bob Holman has always been a leader and mentor to the D.A.D. Sales team, and we value his continued leadership in his new role.” – Bonnie Youngs, Vice President, D.A.D. Sales. Read More…

  • AD Canada LinkedIn Page Now Live

    AD Canada LinkedIn Page Now Live

    AD is thrilled to announce the launch of a new AD Canada LinkedIn page, which serves as the AD Canada community’s dedicated source for the latest news, happenings, updates, and events for AD divisions operating north of the border. AD Canada is elated to have this new line of communication available to connect the Canadian arm of the organization directly to the valued AD Canada community, and the AD Canada team looks forward to helping members and suppliers keep in-the-know. Read More…


Peers & Profiles

  • Schneider Electric, a leader in the digital transformation of energy management and automation, is Canada’s top international corporate citizen in 2022. This designation was awarded to Schneider Electric by Corporate Knights, a media and research company committed to advancing a sustainable economy. Read More…

  • The Sonepar Ontario Region is proud to announce the relocation of their SESCO Central Distribution Centre (CDC) to its new location in Brampton, ON. This move has facilitated an amalgamation between Texcan’s large Brampton branch and SESCO’s CDC, as both businesses work together within one facility for the first time. Read More…