Flir Systems makes $42M deal, reports increased earnings
21st October 2009
Flir Systems Inc. has acquired OmniTech Partners Inc. for $42 million, the companies announced Wednesday.
The companies make similar products. Portland-based Flir (NASAQ: FLIR) makes thermal imaging and infrared camera systems, so the companies have common products. Freeport, Pa.-based OmniTech makes image intensified and fused image intensified and thermal imagers.
Flir on Wednesday also reported a 9 percent increase in third quarter earnings, beating analyst estimates.
Flir reported third-quarter earnings of $60 million, or 38 cents per share, up from $54.8 million, or 35 cents per share, during the same quarter last year.
Revenue jumped to $285.6 million, up 3 percent from $276.7 million a year earlier.
Analysts polled by Thomson Reuters anticipated earnings of 35 cents per share on $281 million in revenue.
Sales in the company’s government systems and commercial vision systems increased 7 percent and 15 percent respectively. The thermography business decreased 12 percent from the previous year due to lower demand for high-value products.
Flir’s order backlog increased by $10 million in the quarter to $608 million, with more than two-thirds coming from the government systems division.
With OmniTech, Flir is acquiring a company with anticipated annual revenue of $22 million this year. The company said the deal will allow Flir to take advantage of the growing market for image-intensified devices.
The acquisition is expected to be immaterial to Flir earnings in 2009 and 2010.
Flir shares are up 3.2 percent in late-morning trading to $29.88. They have traded between $18.81 and $33.74 in the past year.