PORTLAND, Ore., 14 Sept. 2007.FLIR Systems Inc. has entered into an agreement to acquire a controlling interest in Cedip Infrared Systems, a provider of infrared cameras and stabilized gimbaled systems based in Croissy-Beaubourg, France.
Cedip manufactures cooled mid- and long-wave infrared cameras for the science and security markets, as well as high-performance, stabilized gimbals for a variety of airborne commercial and government applications. For the fiscal year ended December 31, 2006, Cedip reported revenue of EUR 18.2 million (approximately $25.1 million) and operating income of EUR 3.1 million (approximately $4.3 million).
Under the terms of the agreement, FLIR has agreed to buy shares representing 67.8% of the share capital of Cedip, on a fully diluted basis, for a cash consideration of EUR 19 per share or a total of EUR 41.4 million (approximately $57.1 million).
In the Science camera market, the acquisition improves FLIR's international distribution network and brings new products and technology, including cooled mid-wave infrared cameras, while also providing a manufacturing and technology base in Europe. FLIR anticipates cost savings through integrated distribution and lower manufacturing costs from utilizing FLIR infrared sensors in certain Cedip products.
Cedip's Polytech subsidiary, located in Eskilstuna, Sweden, specializes in mid-size, low-cost, stabilized gimbal systems. Polytech's products will expand FLIR's portfolio of stabilized multisensor systems and position it to take advantage of incremental growth opportunities in FLIR's Government Systems and Commercial Vision Systems businesses.
Upon closing of the transaction, Cedip's infrared camera operations will be integrated into FLIR's Thermography Division. The Polytech subsidiary will be integrated into FLIR's Government Systems Division.