Here’s everything investors need to know about the deal between the two companies.
- The latest news pushing FLIR stock higher is that Teledyne plans to acquire FLIR Systems.
- TDY plans to use a mix of stock and cash to acquire the company and the total value of the deal is set at $8 billion.
- The deal will have Teledyne Technologies offering $28 in cash and .0718 shares of TDY stock for each share of FLIR stock.
- That values shares of FLIR stock at $56 each.
- It’s also a 40% premium to the stock’s 30-day volume-weighted average price as of Dec. 31, 2020.
- Teledyne notes that its acquisition of FLIR Systems will be immediately accretive to its earnings.
- It also expects it to be accretive to its GAAP earnings in the first full following calendar year.
- The deal also has TDY taking out a $4.5 billion 364-day credit commitment.
- It will use these funds for the acquisition as well as refinancing some of its debt.
- Both companies’ Boards of Directors have already given their support to the deal.
- However, the deal still needs regulatory and shareholder approval before it can close.
- So long as there are no issues, the two companies are expecting to complete the deal in the middle of 2021.
FLIR stock was up 18.3% and TDY stock was down 37% as of noon Monday.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.