Teledyne Technologies, a prominent player in instrumentation and aerospace electronics, has announced its agreement to acquire select aerospace and defense electronics businesses from Excelitas Technologies for $710 million in cash. This acquisition includes the Optical Systems (OS) business, known as Qioptiq®, located in Northern Wales, UK, and the Advanced Electronic Systems (AES) business based in the U.S.

The OS business specializes in advanced optics for various applications, including heads-up displays and night vision systems, as well as proprietary glass for space and satellite use. Meanwhile, the AES business focuses on custom energetics, providing devices such as electronic safe and arm systems and high-voltage semiconductor switches for defense and space sectors.

Teledyne's Executive Chairman, Robert Mehrabian, expressed enthusiasm about the acquisition, highlighting the complementary nature of the products and the alignment of customer bases in different geographies. He emphasized the potential for growth and innovation that this acquisition brings.

George Bobb, Teledyne's President and COO, noted that the addition of these businesses to their aerospace and defense electronics segment aligns with their recent strong performance. He also mentioned the compatibility of the operations and culture between the acquired businesses and Teledyne's existing defense electronics organizations in the U.S. and UK.

Doug Benner, Executive Vice President of Excelitas, shared his excitement about the acquisition, stating that it would enhance their ability to provide electro-optical solutions that ensure the safety of troops and valuable assets. He expressed confidence in a smooth integration process that would benefit all stakeholders involved.

The transaction is expected to close in early 2025, pending customary closing conditions and regulatory approvals. Teledyne anticipates that the acquisition will positively impact both GAAP and non-GAAP earnings per share, excluding transaction costs.

Financial advisory services for the transaction are being provided by Evercore and Harris Williams, while Fried, Frank, Harris, Shriver & Jacobson LLP is serving as legal counsel for Excelitas. McGuireWoods LLP is acting as legal advisor to Teledyne.

This acquisition marks a significant step for Teledyne as it continues to expand its capabilities in the aerospace and defense sectors, reinforcing its commitment to innovation and customer service.