FLIR - Teledyne to acquire FLIR Systems for $8B guides Q4 preliminary results above consensus

Teledyne Technologies (TDY) to acquire FLIR Systems (FLIR) in a cash and stock transaction for ~$8B. FLIR stockholders will receive $28/share in cash and 0.0718 shares of Teledyne common stock for each FLIR share, which implies a total purchase price of $56/FLIR share.Net leverage at closing is expected to be ~4.0x adjusted pro forma EBITDA with leverage declining to less than 3.0x by the end of 2022. The company expects the acquisition to be immediately accretive to earnings, excluding transaction costs and intangible asset amortization, and accretive to GAAP earnings in the first full calendar year following the acquisition. The transaction is expected to close in the middle of 2021.Teledyne’s expects Q4 sales of ~$800M vs. consensus of $792.65M, diluted EPS in the range of $3.16-$3.19 vs. consensus of $2.74 and operating margin rate of ~17.5%.The company expects FY2020 EPS in the range of $10.30-$10.33, vs. prior outlook of $9.70-$10.00

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Teledyne to acquire FLIR Systems for $8B, guides Q4 preliminary results above consensus