Teledyne makes largest purchase since FLIR deal
It has been a busy week for Thousand Oaks-based Teledyne Technologies.
Just a few days after the technology and defense conglomerate announced it had made an acquisition, Teledyne announced it made an even bigger purchase the morning of Nov. 6.
In an effort to bolster its aerospace and defense electronics business, Teledyne announced it has acquired select businesses in those areas from Excelitas Technologies Corp. for $710 million in cash.
The transaction is anticipated to be completed in early 2025, according to the company.
“We are excited to announce this pending acquisition, which will bring us new technology in markets well-understood by Teledyne. Our respective products are highly complementary and not competitive, and we generally serve customers in complementary geographies,” Robert Mehrabian, executive chairman, said in a press release.
“We look forward to welcoming these businesses and their employees to Teledyne.”
Excelitas, headquartered in Pittsburgh, is a company that develops and manufactures photonic technologies for a variety of industries, including aerospace, defense, medical, and industrial.
New York-based AEA Investors has owned the technology firm since 2017 when it acquired it.
The assets Teledyne acquired include the Optical Systems business known under the Qioptiq brand based in Northern Wales, UK, as well as the U.S.-based Advanced Electronic Systems business.
The UK-based optical systems business provides advanced optics for heads-up and helmet-mounted displays, dismounted tactical night vision systems and proprietary glass used in space and satellite applications.
And in the U.S., the AES business provides custom energetics, including electronic safe & arm devices, high-voltage semiconductor switches and rubidium frequency standards for defense and space applications.
These businesses will be incorporated under Teledyne’s aerospace and defense electronics segment which “has performed exceptionally well in recent years,” said George Bobb, president and COO of Teledyne,
“Furthermore, we believe the businesses’ operations, personnel and culture are very compatible with our U.S. and UK defense electronics organizations,” he added.
Teledyne announced its third-quarter earnings on Oct. 23 and noted that sales for its aerospace and defense electronics segment grew 9.2% to $200.2 million.
Through nine months of the 2024 fiscal year, Teledyne has seen aerospace and defense electronics sales rise 7% to hit $583 million, according to the company’s earnings.
“We are excited about the new opportunities this acquisition will bring and look forward to a seamless integration that will benefit our customers, employees and Teledyne stakeholders,” EVP of Excelitas and President Defense and Aerospace Segment Doug Benner said in a press release.
“Our journey providing electro-optical solutions designed to keep troops and high-value assets safe continues with an industry leader.”
Teledyne shares vaulted 4% during the trading day Nov. 6, with the stock price hovering above $477. Year-to-date, shares are up 8.9%.
This is also Teledyne’s largest acquisition since it paid $8 billion to acquire Flir Systems, which is now incorporated into the company’s digital imaging segment, its largest division.
It is also its ninth acquisition since that Flir purchase and its second a 72-hour window.
On Nov. 4, Teledyne announced it had acquired Mircopac Industries, a manufacturer of microelectronic circuits and sensors for military, aerospace and medical applications.
Teledyne purchased the Texas-based company for $20 per share in an all-cash transaction valued at approximately $57.3 million taking into account Micropac’s net debt as of Aug. 24.
Approved unanimously by both companies’ board of directors, the acquisition is expected to close by the end of 2024.
Evercore and Harris Williams are acting as financial advisors, and Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal advisor to Excelitas in connection with the transaction.
McGuireWoods LLP is acting as legal advisor to Teledyne.
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