Sam is a trader and one of our lead stock analysts at AskTraders. After starting his career predominantly in the forex markets, Sam now focuses on gold and stocks with a preference for macroeconomic analysis.
On Monday, Teledyne Technologies (NYSE: TDY) announced it has agreed on a deal to acquire FLIR Sytems (NASDAQ: FLIR) in a cash and stock transaction worth approximately $8 billion.
The deal will see FLIR stockholders receive $28 per share in cash and 0.0718 shares of Teledyne common stock for each share of FLIR.
The transaction represents a total purchase price of $56 per share and a 40% premium for FLIR shareholders based on Teledyne’s 5-day volume-weighted average price as of December 31st 2020.
Teledyne has arranged a $4.5 billion 364-day credit commitment to fund the transaction and refinance existing debt and expects to fund the transaction with permanent financing before closing.
“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,” commented Robert Mehrabian, Executive Chairman of Teledyne.
The news has seen FLIR shares kick-off 2021 on a high, currently trading at $52.19 after reaching initial highs of 19.07%. Teledyne shares have seen the opposite effect, falling over 7% to $363.32.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .