Teledyne and FLIR to Combine Forces in $8 Billion Deal

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Teledyne Technologies (TDY) - Get Report is buying thermal image technology and hardware provider FLIR Systems (FLIR) - Get Report in a cash and stock deal valued at roughly $8 billion.

Under terms of the agreement announced on Monday, FLIR shareholders will receive $28 a share in cash and 0.0718 shares of Teledyne common stock for each FLIR share, implying a total purchase price of $56 per FLIR share based on Teledyne’s five-day volume weighted average price as of Dec. 31.

The transaction reflects a 40% premium for FLIR stockholders based on FLIR’s 30-day volume weighted average price as of Dec. 31, the companies said.

Shares of FLIR were up 20.09% at $52.99 in premarket trading on Monday.

The deal gives both companies a leg up in the sensor, camera and sensor systems business "...with minimal overlap, having imaging sensors based on different semiconductor technologies for different wavelengths,” according to Teledyne Executive Chairman Robert Mehrabian.

Sales of Wilsonville, Oregon-based FLIR's thermal cameras have surged in response to companies' concerns about the coronavirus pandemic. While its thermal cameras cannot detect or diagnose any type of medical condition, they can identify elevated skin temperatures through non-contact temperature monitoring.

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