Teledyne Acquires FLIR
Teledyne has acquired FLIR for $8 billion but is this a good outcome for FLIR?
Inside this note, we examine the combination and, in particular, what this means for the future of FLIR in physical security.
Executive *******
**** ** * **** *** *** great ******* *** ****, **** *** company ***** ******** ** ** ******* valuation ** ~$** *** *****, ********** lower **** *** *****'* **** ****:
*******, ***** *** *******'* ********* ** be ***** $*** *** ***** *** to ***** ****** ******** *** ******, *** **** **** in ****, **** ** *** * ************ strong *******.
** * ********* *****, **** *** being ******** *** **** **** ******'* ******* ~$*.* ******* *** ~*** ****'* income ** ~$*** *******.
Teledyne's ********* ******* ***** *** *************
********'***-**** *********** ************ * ******, ********** ***********, ****. First, ******* ********* *****:
**** * ********* ***********, ***** $** million ********* *** ****** **** ** FLIR's **** *******, ** **** ***** be ********.
*** ****** ***** ******** ********** ** that *** ********* *** *************:
** **** *** ******* ******** ************, but ** ***** ******, **** ***** roughly ****. ***** ** **** *******, e.g., ******* ****** *******, ****** ** may **** **** ** ******* ** terms ** ********'* ******* *********.
Teledyne ******** - *** **** *****, $* ******* ** *******
***** **********-*************** *** **** *****, *** ******* does ************* **** ******* **** **** (i.e., $* ******* *** ******** ** $1.9 ******* *** ****).
**********, ********'* ******** ********* *** **** of ***** *********** *******:
********'* **** ******** ******** **********:
Physical ******** ******** ******?
*** **** *** **** ********* *** no ********* ******* **** ******** ** FLIR's ******** ******** ********, ***** ** just * ******** ** ****'* ******** (5% ** ****).
*** *********** ** **** **** **** not **** ****'* ******** ******** ******** since (*) ** *** ************** *** *** **** *** *****, ** **, (*) ** *** small **** ****** *** **** ****** even ******* ** **** ** ********, and (*) ******** ******** **** *** offer *** ************ ****** ************* *** Teledyne's **** ********.
**** ***** ** ***** *** ****** Teledyne/FLIR ** *** **, ** **** as ****** ** ***** ****** *********** in ******** ********.
Vote / ****
Update: **** *********
*** **** *** **** *********,******** *********:
** **** ** *** ********** *******’* special ******* ** ************ **** ** May **, ****, *** ************ ******** and ******* ****** ********* ******* ** the ********* *** **** ** ****** dated ******* *, ****. **** **** now ** ******** ** ********’* ******* Imaging ******* *** ******* ***** *** name ******** ****.
********/****'* ******** **** ** *** *********** from ******* ***** *** ** ************.
*** ******** *** ********** *****, *** specific ***** *** ********:
- ******* ******** ************ ********* ******** ****** *********** *** ************* **** *** ******** are ** **** *****, ********* *&* synergies, * ******* ********* ** ********* downturns, *** * ****** ** ** market ******** **** *** ******* *** offer * ***** ** ******** ****** all ***********
- ******** **** ***** *** ** ***** to *********** ****** *** **** ******** or ****** ***** ** ****'* ********, because "**** **** ** ***** *** is ******* *** ****." ** *** on *** **** ********* *** ********* of ********** ********/***** ************. **** *** Jim ****** *** ******* ****'* ******** over *** **** * ***** *** moved **** **** **********/******** ****, ***** most ** ***** ************ ***** **, towards *** **********/******* ********.
- ******** **** *********** (***) ********* *** discussed ** *** ****, *** ******** noted *** ********** *** ********* *** FLIR **** **** *********.
**************** ********
- ******** ** ************* **********
- ******** ******** ** *** **** **** niche,space-based ************ ***** ***- ******* ******* telluride. **** ** "**** ****-***, **** expensive."
- **** ** ******** *** ******* ** what ******** ************ **, *** **** is ***** ** ********* ************* ********* and ************
- **** *** *** ****** ********: **** in *** **** * ***** *** had ********* ***** **** **** **********/******** to **********/**** ********** *** ******* ********
- **** *** ******** "**** ********* *********, shared ***** ** ********** *********** *** operational **********, ******* ******** ******."
- **** ****’* ***********, **** *********** ***** sense ************* *** ***********.
*&* **** ********
- ********** *******/******? **********?
- ******* **** *** ******* *** “**** different” *** ***** ********* ******** ** the ******, ** ****** *********** *** regulatory ********
- ********** ** *** *** **** **** together?
- ******: **** *** “**** ******* ********’* accomplishments”
- ****** ********* ***** *********** *** *** deal **** ********** **** *** ***********
- *********/ ******** ** *** ****
- ****** ***** ** **** **** ******** leverage **********-*****
- ********* ********** *** *** ***** ** 2020
- ******** ***** **** *** ****** ** not *******
- **** ** ********'* ******* **** ******** because ** *** ******** *** ******** seeing ********
- ******** ******** ** ***********, ******* *********, Teledyne ******** **** ** ****’* ********* will **** **** *** **** ** for *** *******
- *********: ******** ***** *** ***, ** if *****’* *** **** ** **** use ** ********, *** ** *** time
- *** ** ***** **** ******* ****
- ** ****, ******** **** $** ******* out ** *********** ** ******** # of *********, ********** **********, ***********- ******* tactics ****** ***********
- ********** ************ ** ********? ***** ************?
- **** ******** ** ***** ** ********** small- *** ******* *** ***** ******** and ******
- ******** ***** ******** ** ***** *%, but **** ****** ********* ********. * lot ** ******* ** *********** ** air ******* ********** *** **** ** China. ** ******* *******, **** **** 8%, ~*%.
- ******** ************ ***** **** ******** **** in *** **
- ********** *******
- *********: ********* *** ***** *** ****
- **** ****** * ******** *********
- ********* ************? ******** ** ******* **** portfolio *** **** ***?
- ** ***** ** ****** ******* *** way **** ******** ***** ** **** well *** ****.
- ********/**** ******** ** ******
- ******** ****** ** **** **** ** a ****** ****** **** ***-******-***** ******* growth
- **** ********** ** **** ****** *******- unmanned ******, *******
- **** *** ****** ***** ******* **** Teledyne, ********* *** *** ***** ******* together, ********’* ***** ******* **** ********
- ******** ** ****'* ****** ********
- ****’* ******** *****’* *****. *** *** Teledyne **** **** ****?
- *********- **** *** *** ***** ** the **** **** ******** ***, *** they **** * ***** ******** ********* and * **** ********* **** ***********. (quality, ********** *******, **********).
- **** ******** ********* ******* ** **** that *** *** ***** *** **** withdrawn (***-**** *******, **** **** ****). Why *** **** ******? *** ** we **** **** **** ***’* ****** again?
**** *** ** **** **** “********” issues- ****** ******* ************
******** *** **** **** ** ************, disciplined- *** *** * ****** ******* of ******* ******* **** *** ** years *******
**** ** ********’* **** ** ****’* trailing *******- ******** *** ****** ** “almost **********” **** ******* *** *** not **** * ******* ** *** business
- ************* *** *&* ********?
- **** * ******* **** ** ****** and **** * ***** ** ******** across *** ***********, **’* * **** strong ******* *****
- *&* ** *************- ******** *** **** both ****** ~*-**% ******* ** *&*, can ******* **** **** *****'* *&*
** ***** ** ****** ******* *** way **** ******** ***** ** **** well *** ****.
** **** * ****? **** ****** this ***** *) ******** ****'* ** their *** ********* ** *) **** are ************* ********** ********* - ***** a *********** ** ****.
**** *** *********** * **** ****** of ****** **** *** **** *.* years - **** **** *** ********** side - **** ** **** *********** and ************* ******* *** *********. * would ***** *** ******* ****** ** employees ** *** **** ********** ******** has ****** ************ **** *** **** three ***** ** ***** ******** ** buying * *********** ******, *** ****** who ***** **** ****** **** **** pushed *** ** ***** **. ***** is ***** ****** ***** **** *** rebuild *** ** **** ** * rude ********* ** **** ***'* **** that *******.
*** ** ******* *** ******** ***** was ******** **** ******* ******** ******* this **** ****** * ******* *****. FLIR ***** ****** ******** ******** *** they **** ** **** ******** ************ to **** **** ********.
***** ** *** **** **** *** "worked ****" ** **** **** *** last *** *****, ** ****** **** division *** **** **. ********* ******** can *** ****'* ***** ** ***** and **** ******* *** ********* **** has ****** **** *****. *** ** they **** ** ***** *** ****** then *** *'* **** **** **** happen.
***** ** *** **** **** *** "worked ****" ** **** **** *** last *** *****, ** ****** **** division *** **** **. ********* ******** can *** ****'* ***** ** *****
******* ********. **** ****** ******** / FLIR **? **'* * **** ******* so **'* **** ** *** / optimize ** **** ****** ***** ** so **** ********* *****.
**** ***** ****** **** *** ******* than *** ******.
*****, **** *** ** **** ** possible *** ****** ********** ******** ********. It's ******* **** * ***********, ********* it ** * ***********.
******** *** ********** ************ ******** *** possibly ****** ****. **** ******** ********** WaterPik.
********* ** *** ********** ******** ******** is ***** *********, ***** ** ********'* abilities *** ******* ******.
****** ******* ** *** ************* *** weapons ********* ******** ***** **** *** small ***'*.
*** **** * ***** ** ** part.
* *** *** **** ******* ********. When **** **** "****" *** "*******" in *** **** ******** * ****** choked ** ** ******* ***** *****.
********'* ******** ** **** **** ** sound **** *** *** ********* *** conducted **** * ***** ** **** and ********. ** ***** ** **** their ********** *** *** ***** *** being **** **** ** ******** **********. It ***** ******** **** ***** ******* to *** ****** **** **** *** products ***** *** *****. ** **** was ****** ********* **** **** ******'* have *** ** **** ***** ***** trailing ** **** ****.
******* *** ***** **** ** *** standard *********** *********** ****. ** ****'* making *******, ******** ****** ****. **** them ***** ***** *** *** ***'* recognize *** ******* ** ****'* **** of **. ********* **** *** **** period. **** ** **** ********** *** of *** ** ******** ** *** to *** ***** *** ***** *********** return. ****** *** ********* *** *********. Seen ** *** **** ***** ** think ******** ********* **** ******. **** of *** *** ***** ***** *************** companies **** ** *** ********, *** that **** *** * ***** ******* lately, *** ***** ** *** ******** know *** **** ****. *** ******* up ** ***** ************ *** ****** what **** **** ***** *** *** most ****.
* *** ******* *** *** ***** doing ********** ********, *** ******** *** border. **** ***** ******* ** ** floundering ***** *** *********** ** *****.
***** *********** *** *** **** "****** spot" *** *** **** ******** ********, I **** **** *'* ******* *****
**, *** ***** *********** *** ********* regarded ** * **** *********** **** never ***** ******** ** *** ********.
* ***** ****** ******** ** ******** to ****** ****'* ******* ******** ******** of *******/******* ******** ********, *** *** everything **** ** *** ******** *********.
*** ******** *** *** **** ****** stagnant **** * ******* *********** *** customer ****** *********** *** *** **** several ***** ***. *** ******* ******* are ****** ***/*** ******** **** ***** firmware **************, **** ** *** **** stand *** ** ***** ****** ******* in *** ***. **** *** ** modern ***** ********* ** *** ****, and ** ***** ** ******** *** Teledyne ** *** *** ****** ** developing ****.
**** *** **** **** ***** * market ****** ** ******** ** ****** little ** ***** **** ** ******** to *** *****, ** * ******* product ** *** ***.
**** ** ******* **** ***********, **** had ********* *** ********** ** * path ** **** *** ******** ******. They **** **** *** ****** ** the ********, *** *** ********* **** are *** ***** *** ****** ****** or **** ****** ********* *** ********. This *********** ***** **** ***** ** the ****** **** **** ******* ** to ****** **** *** *** ****** in *** ******** ******.
* ****** ***** **********/******** ******* ** grow ***** ********, *** ***** *** the ****** *** ******** **** ****** thermal ******* **** **** ** *** see **** *********** ** ********** ********, even ** ******** ************** *********.
******* **** ****'* *** ***** ** employees ** *** ****:
** ******* ****** **** ********, ** will ****** * ******** ******** *** growth *** ********** *** ** **** better ********** ** **** *** ******** needs ** *** *********, ***** *********** value *** ****** *** ************* *** our *********. ********, ** **** ***** a ******** ************* ***-**-*** ********* ** sensory ************ *** *** *** ******* and ************ ****** * ****-********, ****** customer ****. ** ********, ** **** similar ******** ******, ********* ******* ********** markets *** ********* **** *******, ******* and ****** *******.
****** *** ********* *** ********* ******** of **** ***********, **** *’* ****** excited ***** ** *** ****** ***** on ********** ********** *** *********** **********. Importantly, ********’* ******** ** *** ******* is * ********* ** **** ******* and *** **** ** **** ******** over *** **** ***** ***** ** a ******* ** *** *****. * firmly ******* **** *********** **** ****** us ** ***** ** *** *************** and **** **** ** *** ************* for *** *********.
Next *****: ******** ** *****
*** *********** ** ******** ** ***** in *** ****** ** ****. ***** then, **** *** ******** ****** ******** companies *** ** ** ******** ** usual. *** **** *** *** *** help ** ** ********* ******* ** our **** *** ******* *** ** your ***-**-*** ****************. *** ******** **** lives *** ***********, *** *** **** than ****, *** ********* *** ******** on ** ** ******** ********** ****.
**** *****, ******* ******* ** ** deceptive, *** ******** ** **** ******* to ********** ***** ** *** ******** as *** *********** ********* *** ********** are *******.
*** ****** ****** ****, *** ** is "****** *******" ***** **** ***********. I ********* ***** ** *** **** to ** **** ** ** *** grand ****** ** ******, * ***** FLIR's ***** ******** **** **** * bad **** ** ****** *** *** with *** ******* ** ****, **** were *** ** * **** ******** to ***** ** ******* *** ** recover *** ***********.
******, * **** *** ****’* **** FLIR, ***** **** ******* ******* *** company, **** ****** *** ****** ** increase *** ********** ****** *** ****** dependency ** ********** ******** (******** *** foreign).
*** ******* **** **** **** ** restructuring ** * *** ****** ********* ******* *** ******* *** ****** line. ******* *** ******* ******** ** **** *****.
* *** ** ****** *** *** shares ** *** *** ***** **** Jim, ** *** **** ****’* ** bad ** * ********.
**** ********* (**** *** ********) *** made ** ** **** ************. ***’* see *** **** ** ***** **** acquisition.
******** ** ******'* ****** **** ** took **** ********* *********** *****. *** one ***** *** ***** ****** **** of *** ********* ** *********. ******** dev *** ******* ***** ****** ** were *** **** ** *** ******** video *****. * *****. **** * different ****** ***** ***** **** **** a **** ******** *******.
* ***** **** ** * ************* acquisition. ***** ** *** ******** ** Lidar *** **, **** ***** ** visual *****. ******** ******* **** ******* analytics ** *** ********* **** ** they ********, ********* **** **** ******* down ** *** ******** ****.
*****, *** ** ***** **** **** there ** ** *********** ** * security ******* ** *** *** ** much ** ** *** ** ********, it ***** ***** ********* ****** ****** and ******** ******* * ***-****** **** child ** *** **** *******. (********* to *** ***-****** **** ******** ****.)
***** *** **********, ** ******, **** Canon/Axis/Milestone ***** ***** ***.
********? ****. ****, * **** ** surveillance ******* **** ** *** **** company **** ***** ** ******** ***** and ** ******* *********. ***, *** many ****, *********, ********, *** *********** does **** ******** (*** *** *********) have ** **** ****** ** *** ass ****** ******* ******* *** *** just *** * **** ****?. ** seems ** ** **** *** ******* degree ** ********** * *********** ** this ******* ******* ** ** *** "mediocracy **** *** ******** ** **** of *** ****** *** ****** ** none". **** *** ************ ******** ** FLIR ******** **** ******** ****** **** for ***-************* ********, *** ***** ******** will ** **-*********** *** ******* ** death ** *********, *** ******** **** fuel *** ****** *** *** ****** will **** *** ******** *** **** key ** ********* ******* ** *** surveillance ******** **** ***** ******* *** cliffs ** **** ******* ** *** their **** *** *** ***** ******* line ***** **** ******* **** ** shit. ** *** ***** ***** *** customers *******. **** **** *** **** the ***** "****" ***** *****.
***! ***** **** ** **** * couple ** ***** **-**** ********* ****. I'll *** * ***** **** **** if * ****** ** *** ****, but **** *** ****** ****** ***********, so * **** ****** *********** ** well. ** ***** *** *** **** all ***** ***.
***** *** * ****** ** ********** bad ********* **** ** **** ******** management, ** ****** *** ** **** management ** ******* ** *** ******** division. *******, ***** **** ** ********** damage *** ***** *** * **** chance ** ********* *** *******. *** (IMHO) **** *** ****** ******* *** security ******** *** * ***** **** of **** ********* *** ********. * have ** ***** ** *** * bitter ******* ** *** *** *** things ******* *** ******* *** **** done ** ******* *** *********. **** Security *** * ***** ***** ** be ** *** *'* **** ******** for *** *** ****** *** **** experience. **** ******** **** *** ********? Perhaps. *** "**** ** **** *** never ***", ** ** ***** ***.
*.*. *'* *** ***** *** *** hiding.
*’* *** *****, * **** ** shares *** *** ****.
****** *** ** *** ********** ******** business, *** * ***** **** ** the ********** ******** *** *** ****** security *****.
*** ***** ****** *** ****. ** just ******* **** ****** *********. **** it *** ***** **** ***? *** Tyco, *********, ******** ***. **** ***** anyone ***** ******** ** ***** ** embrace ***** ************ ******** ***** *** multitude ** ****** **** ******* ***? Its ***** ** **** ***** *** middle ***** ** * ****** **** 9 ****. **** **** *-* **** before ******* ******** **** *******.
*******. **** ** *** **-**** ********* I **** **** ** ***** **** are ****** ***** **** ***** **** landed.
**** *******, **** ***+ *********:
*******, *********** *** **** **** ******** than ************* ** **** ****.
** **** ** *** * **** of * *** ** **** ******** for ********* ********, *** ****** *** over *** **** ******* *****. ******* and ********** ******* ****** **** ********.
** *** *** ****. ******* *** you ******* ** ** ******* ****? We **** **** **** ********* *** always **** ** **** ***** ** who ** *** *****.
******: **** ** *** (**** ****)****** ********* *** ********/****. ** **** *** ******** ** but ******* ** **** ** **** anyone ** **********.
** ***'** ******* *** * **** end *********** *** **** ********, ***** out *****.
*** **** *** **** *********,******** *********:
** **** ** *** ********** *******’* special ******* ** ************ **** ** May **, ****, *** ************ ******** and ******* ****** ********* ******* ** the ********* *** **** ** ****** dated ******* *, ****. **** **** now ** ******** ** ********’* ******* Imaging ******* *** ******* ***** *** name ******** ****.
***********'* **** ** *** ****** ** * ***** ** **** ET, ** **** ****** *** ****** with ******** **** *** ****.