FLIR Systems, Inc. (FLIR)
From The Cutting Edge
FLIR Systems, Inc. (FLIR) has agreed to acquire Point Grey Research, a maker of machine vision cameras used in industrial, retail, scientific, traffic, mapping, and various other advanced imaging applications. Total purchase price for the deal is $253 million, making this the company’s biggest acquisition since picking up ICx in 2010.
FLIR says the acquisition will augment its existing OEM cores and components business by adding a broad range of visible spectrum machine vision cameras and solutions. The deal further signals FLIR’s diversification into a broad range of machine vision applications. Other recent acquisitions include the purchase of security camera firm DVTEL in 2015, and tactical scopes and sights firm Armasight earlier this year.
FLIR expects related costs to be ~$0.01 dilutive to its 2016 EPS and accretive for 2017. The company remains one of our favorite long term positions.
Jason Stutman, The Cutting Edge, www.angelpub.com, 877-303- 4529, October 4, 2016