Teledyne Technologies Incorporated is set to acquire select aerospace and defense electronics businesses from Excelitas Technologies Corp. for $710 million in cash. This strategic expansion will enhance Teledyne’s portfolio in advanced optics and defense electronics, strengthening its presence in both the U.S. and UK markets.
The acquisition includes two main business units from Excelitas. The Optical Systems (OS) business, known for its Qioptiq® brand, is based in Northern Wales, UK, and specializes in advanced optical solutions. These include heads-up and helmet-mounted displays, tactical night vision systems, and proprietary glass for space and satellite applications. The U.S.-based Advanced Electronic Systems (AES) business focuses on custom energetics, including electronic safe & arm devices, high-voltage semiconductor switches, and rubidium frequency standards, used widely in defense and space sectors.
Key Benefits of the Acquisition
This acquisition is anticipated to bring new technological capabilities to Teledyne, with both companies serving complementary geographies and non-overlapping product lines. According to Robert Mehrabian, Teledyne’s Executive Chairman, the addition of these businesses will integrate well with Teledyne’s current defense electronics offerings.
“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,” Mehrabian said.
Teledyne’s President and COO, George Bobb, echoed the enthusiasm, noting that the businesses’ operations, personnel, and culture are highly compatible with Teledyne’s current teams in the U.S. and UK. This acquisition is expected to strengthen Teledyne’s aerospace and defense electronics segment, which has seen exceptional growth in recent years.
Excelitas Looks Forward to Joining Teledyne
Excelitas leadership also expressed optimism for the transition. Doug Benner, EVP of Excelitas and President of its Defense and Aerospace segment, highlighted the opportunities this acquisition will bring, not only to their customers but also to employees and stakeholders:
“Our journey providing electro-optical solutions designed to keep troops and high-value assets safe continues with an industry leader,” Benner stated.
Looking Ahead: Regulatory Approvals and Financial Impact
The transaction is expected to close in early 2025, pending customary regulatory approvals. Teledyne anticipates that the acquisition will positively impact both GAAP and non-GAAP earnings per share, excluding transaction-related costs.
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