FLIR Systems, Inc. has recently announced that the company has entered into a definitive agreement for acquiring Endeavor Robotic Holdings, Inc., a developer of unmanned ground vehicles (UGVs), for $385 million in cash from Arlington Capital Partners.
FLIR Systems’ President and CEO, Jim Cannon, mentioned that this acquisition has positioned the company as a leader in providing unmanned solutions, along with advancing the company’s strategy that was detailed at last year’s Investor Day.
Cannon added that this acquisition is aligned with the company’s evolution from just sensors to intelligent sensing and eventually to solutions which save lives and livelihoods. The momentum of Endeavor with the U.S. DoD and other police and global defense forces provides the company with significant opportunities for participating in long-term franchise programs and would assist in its growth.
Sean Bielat, Chief Executive of Endeavor, stated that uniting with FLIR Systems would enable the company to take its life-saving technology to the next level, in a bid to better serve the police officer, the warfighter, and the first responder who use the company’s robots on the frontlines regularly.
Bielat further said that Endeavor is now a part of FLIR, which seeks a strategic growth in unmanned systems. It would be also investing in the people, platforms and products of Endeavor. Beilat believes FLIR is an excellent fit for the company and Endeavor would look forward to its mission ahead.
A news release from Business Wire revealed that Endeavor would be part of the Unmanned Systems and Integrated Solutions division of the FLIR Government and Defense Business Unit, upon closing of the acquisition, which is anticipated in 2019’s first quarter.
Reportedly, this transaction is estimated to be $0.03 dilutive to the 2019 adjusted earnings per share of FLIR Systems, owing to the borrowing costs linked with funding the transaction, and accretive thereafter. The management of FLIR would discuss this strategic acquisition during its Q4 earnings call of 2018.