Teledyne and Flir Systems jointly announced that they have reached a definitive agreement under which Teledyne will acquire Flir in a cash and stock transaction valued at approximately $8 billion.
" At the heart of both our companies are proprietary sensor technologies. Our business models are also similar: we each supply 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 combine earnings and cash flow in a consistent and predictable way. With Flir and an optimized capital structure, I am confident that we will continue to deliver superior returns to our shareholders. ".
" Flir's commitment to innovation covering multiple sensing technologies has enabled our company to become the multi-billion-dollar company it is today.said Flir President Earl Lewis. Thanks to our new partner's complementary technology platform, we will be able to continue on this trajectory, offering our employees, customers and shareholders an even more exciting growth dynamic. Our Board of Directors fully supports this transaction, which brings immediate value and the opportunity to participate in the combined company's growth potential. "
Jim Cannon, President and CEO of Flir, added: " We couldn't be more excited about joining forces with Teledyne through this value-creating transaction. Together, we will offer a unique and complementary portfolio of end-to-end sensory technologies for all key areas and applications to a well-rounded global customer base. We are delighted to partner with an organization that shares our commitment to continuous innovation and operational excellence, and we look forward to working closely with the Teledyne team as we bring our two companies together to capitalize on the significant opportunities that lie ahead. ".
Under the terms of the agreement, Flir shareholders will receive 28 $ per share in cash and 0.0718 Teledyne common shares for each Flir share, implying a total purchase price of 56 $ per Flir share based on Teledyne's 5-day volume-weighted average price at December 31, 2020. The transaction reflects a premium of 40 % for Flir shareholders based on Flir's 30-day volume-weighted average price at December 31, 2020.