FLIR Stock News: 12 Things to Know About the FLIR Systems/Teledyne Deal

FLIR Systems (NASDAQ:FLIR) stock is on the rise Monday following news of a deal with Teledyne Technologies (NYSE:TDY).

A sign out front of the FLIR Systems headquarters in Wilsonville, Ohio.

Source: Tada Images /

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.

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