It’s safe to say, it’s a good time to be in the sensor business. From pharmaceutical research and medical imaging, to manufacturing, aerospace and defense, the Industrial Internet of Things (IIoT) is coming to life one sensor at a time in short order. Today, two firms underpinning this rapidly growing space became one.
Teledyne Technologies and FLIR Systems jointly announced a definitive agreement where Teledyne will purchase FLIR for approximately $8 billion. The cash and stock transaction has board of director approval from both sides, with closing forecast for sometime in the middle of 2021.
“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.
FLIR flaunts the tagline, “The World’s Sixth Sense.” Teledyne is delivering proof “Everywhereyoulook.” The newly formed entity is empowering organizations with omniscience, whether it’s measuring ocean conditions during a storm or propelling efforts in autonomous vehicles.
Mehrabian continued, “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.”
FLIR stockholders will receive $28 in cash and .0718 shares of Teledyne common stock for each share of FLIR stock owned.
Stay tuned, as I’m sure there’s more to come from Teledyne in the coming months.