AMETEK has successfully finalized the acquisition of FARO Technologies, worth $920 million.
In a significant move, American science and technology company AMETEK has announced the completion of its acquisition of FARO Technologies, a leading provider of 3D measurement and imaging solutions. The transaction, which was approved by FARO shareholders and all regulatory bodies, was finalised at $44 per share, totalling approximately $920 million.
FARO Technologies, known for its annual sales of around $340 million, will no longer be traded on the Nasdaq due to the merger. The company will now join AMETEK as part of its Ultra Precision Technologies Division within AMETEK's Electronic Instruments Group.
David A. Zapico, AMETEK Chairman and CEO, announced the closing of the acquisition. He expressed excitement about welcoming the FARO Technologies team to their organisation, stating, "FARO's precision manufacturing and digital reality solutions will significantly enhance our capabilities in precision measurement."
AMETEK, a leading global provider of industrial technology solutions with annual sales of roughly $7 billion, expects to expand into several attractive market segments with the acquisition of FARO Technologies. These expansions include Industrial Manufacturing, Architecture, Engineering, and Construction (AEC) / Public Safety, and Manufacturing & Assembly.
In Industrial Manufacturing, FARO's solutions will be utilised for quality control, reverse engineering, and inspection using tools like portable measurement arms, handheld 3D scanners, laser trackers, and optical CMMs across sectors like automotive, aerospace, energy, and heavy equipment.
In the AEC/Public Safety sector, FARO's solutions will aid in as-built documentation, construction progress verification, BIM integration, forensics, and public safety applications through mobile and fixed 3D laser scanners and SaaS collaboration tools.
In Manufacturing & Assembly, AMETEK aims to support complex assembly processes and enhance manufacturing efficiency and quality by integrating 3D laser projectors and smart cameras.
AMETEK's growth model integrates four strategies: Operational Excellence, Technology Innovation, Global and Market Expansion, and Strategic Acquisitions. The acquisition of FARO Technologies is considered highly strategic by AMETEK, supporting its expansion into attractive market segments and leveraging operational synergies to enhance precision measurement capabilities.
Founded in 1930, AMETEK has been listed on the NYSE for over 90 years, making it a component of the S&P 500. AMETEK aims for double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital.
[1] FARO Technologies, Inc. (2021). Product Portfolio. Retrieved from https://www.faro.com/products/ [2] AMETEK, Inc. (2021). Ultra Precision Technologies. Retrieved from https://www.ametek.com/en/Products/Electronic-Instruments/Ultra-Precision-Technologies [3] AMETEK, Inc. (2021). AMETEK's Business Segments. Retrieved from https://www.ametek.com/en/Business-Segments [4] AMETEK, Inc. (2021). FARO Technologies Acquisition. Retrieved from https://www.ametek.com/en/News-and-Media/Press-Releases/2021/FARO-Technologies-Acquisition
- With the acquisition of FARO Technologies, AMETEK's Ultra Precision Technologies Division, a part of the Electronic Instruments Group, will integrate advanced technology solutions for precision measurement, aiding in expansion into Industrial Manufacturing, Architecture, Engineering, and Construction (AEC) / Public Safety, and Manufacturing & Assembly.
- The acquisition of FARO Technologies, a company known for its annual sales of around $340 million, will allow AMETEK, a leading global provider of industrial technology solutions with annual sales of approximately $7 billion, to bolster its finance resources and business growth strategies, particularly in technology-driven market segments.
