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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 / Shutterstock.com

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.


Article printed from InvestorPlace Media, https://investorplace.com/2021/01/flir-stock-news-12-things-to-know-about-the-flir-systems-teledyne-deal/.

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