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Teledyne (TDY) To Acquire FLIR Systems, Stock Soars 19%

Updated: 4 Jan 2021

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.

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