In an acquisition that unites two large providers of sensors and test equipment, Teledyne bought FLIR Systems in a $8 billion cash-and-stock deal. According to a report at The Street, the new drove up FLIR’s stock price +20% on Monday, Jan. 4.Robert Mehrabian, executive chairman of Teledyne, said in the press release,“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. 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.”
Electrical Marketing newsletter will provide more details on the transaction in this week’s issue.