AMETEK agrees to acquire FARO Technologies for cash
AMETEK plans to buy FARO Technologies for $44 a share in cash. The proposed deal adds 3D measurement and imaging products, subject to approvals and closing terms.
AMETEK has agreed to acquire FARO Technologies through an all-cash offer of $44 per share. The proposed transaction assigns FARO an enterprise value of approximately $920 million. Its equity valuation is approximately $846 million. The per-share consideration represents a premium of about 40% to FARO’s closing share price before the announcement. Enterprise value, equity value and the amount payable for an individual share are separate measures of the proposed transaction.
FARO shares rose approximately 36% in early trading following the announcement. Before the opening bell, the shares traded at $42.80, while AMETEK’s shares rose marginally.
3D measurement and imaging portfolio
FARO supplies portable measurement arms, laser scanners, trackers and other 3D measurement and imaging solutions. The proposed acquisition would expand AMETEK’s Electronic Instruments portfolio, which serves aerospace, medical, research, power and industrial markets. FARO generated approximately $340 million in sales during 2024.
AMETEK Chairman and Chief Executive Officer David A. Zapico described FARO as a fit for the Ultra Precision Technologies division and a complement to its Creaform business. FARO President and Chief Executive Officer Peter Lau expected AMETEK’s scale and operating capabilities to support growth. These are management expectations for the combination. FARO was founded in 1981 and is headquartered in Lake Mary, Florida.
FARO’s financial baseline
For the year ended December 31, 2024, FARO recorded sales of $342.4 million, down 5% from the previous year. Its GAAP net loss narrowed to $9.1 million from $56.6 million. On the company’s separately reported non-GAAP basis, net income was $18.5 million, compared with a $9.9 million loss in 2023.
Fourth-quarter sales were $93.5 million, a decline of 5% year over year. FARO recorded a quarterly GAAP net loss of $1.0 million, compared with net income of $1.6 million a year earlier. Quarterly non-GAAP net income was $9.5 million, up from $5.8 million. FARO’s adjusted measures exclude specified items, including acquisition-related amortisation, share-based compensation, restructuring charges and other tax adjustments.
Approvals and expected timing
The agreement covers all outstanding FARO common shares. Both companies’ boards unanimously approved the transaction. Completion was expected in the second half of 2025, subject to:
- Approval by FARO shareholders.
- Applicable regulatory approvals.
- Satisfaction of the customary closing conditions.
AMETEK is an industrial technology supplier with annual sales of approximately $7 billion. Founded in 1930, it pursues operational excellence, technology innovation, global and market expansion, and strategic acquisitions. The companies cautioned that integration and anticipated benefits remain subject to risks.
Company and contacts
AMETEK, Inc.
Kevin Coleman, Vice President, Investor Relations and Treasurer
Phone: 610-889-5247
Email: [email protected]
Website: https://www.ametek.com/
Leave a comment