AMETEK Acquires FARO Technologies for $920 Million

News Summary

AMETEK has successfully completed its acquisition of FARO Technologies, valued at $920 million. This strategic move enhances AMETEK’s Ultra Precision Technologies Division, bringing together advanced 3D measurement solutions to bolster operational capabilities. Following the acquisition, FARO will operate within AMETEK’s umbrella alongside Creaform and Virtek, aiming to improve service offerings and customer experience in various industries. The collaboration is expected to propel AMETEK’s market presence and sustain double-digit growth in earnings as they focus on innovation and expansion.

AMETEK Completes Acquisition of FARO Technologies for $920 Million

AMETEK has officially finalized its acquisition of FARO Technologies for approximately $920 million. The purchase price of $44 per share in cash was approved by FARO’s shareholders, in addition to receiving all necessary regulatory clearances.

Effective immediately after the merger, FARO’s common stock will cease to be traded on Nasdaq. This acquisition marks a significant expansion for AMETEK, as FARO Technologies will now be integrated into the company’s Ultra Precision Technologies Division, which already includes notable entities like Creaform and Virtek.

Enhancing Precision Measurement Capabilities

The integration of FARO Technologies into AMETEK’s portfolio is poised to enhance the precision measurement capabilities offered to customers. FARO is recognized for its cutting-edge expertise in 3D measurement and imaging solutions, including portable measurement arms, laser scanners, and various software tools. This solid foundation complements the offerings of Creaform and Virtek, creating a comprehensive suite of solutions in the sectors of portable and automated 3D metrology, laser projection, and digital reality.

Prior to the acquisition, FARO Technologies had reported annual sales nearing $340 million. The consolidation of these three divisions is set to amplify AMETEK’s market reach and operational efficiency, further supporting its ambitious goals in several key market segments.

Strategic Focus on Growth

AMETEK is a leading global provider of industrial technology solutions, boasting annual sales of around $7 billion. The company’s growth strategy prioritizes operational excellence and technology innovation to capitalize on global market expansion opportunities. By leveraging strategic acquisitions, AMETEK aims to achieve double-digit percentage growth in earnings per share over the business cycle.

Targeting Diverse Applications

The merger is expected to facilitate solutions for intricate 3D measurement and visualization challenges across a broad spectrum of industries. Application areas include industrial manufacturing, architecture, engineering, construction, and public safety. This expansion is aligned with AMETEK’s commitment to addressing the diverse needs of various sectors.

Independent Operations with Collaborative Benefits

Despite the acquisition, each company—FARO, Creaform, and Virtek—will continue to operate independently. However, closer collaboration among the divisions is anticipated to enhance customer experiences and service capabilities significantly. By working together, these companies can optimize their offerings and better serve clients with innovative solutions tailored to evolving industry standards.

As AMETEK embraces its new acquisition, the inclusion of FARO Technologies and its skilled workforce is expected to bolster the company’s position in the competitive landscape of precision measurement technologies. By uniting their resources, AMETEK is on track to redefine its service offerings and further solidify its reputation as a leading provider of advanced technology solutions.

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Additional Resources

• Pulse 2.0: AMETEK Completes $920 Million Acquisition of FARO Technologies
• Quality Magazine: AMETEK Announces Completed Acquisition of FARO Technologies
• Investing.com: AMETEK Completes Acquisition of FARO Technologies
• Google Search: AMETEK FARO Technologies acquisition
• Encyclopedia Britannica: Acquisition