Industrial tool manufacturer AMETEK (AME) and FARO Technologies (FARO, Financial) have announced that AMETEK will acquire FARO Technologies for approximately $920 million. This news led to a 36% surge in FARO's stock price during early trading. Under the agreement, AMETEK will purchase FARO at $44 per share in cash, representing a 40% premium over FARO's last closing price. FARO's market capitalization is valued at $846 million based on equity valuation. The acquisition is expected to be finalized in the latter half of the year.
FARO Technologies specializes in 3D measurement and imaging solutions, offering products such as portable measurement arms, laser scanners, and trackers. The company is projected to generate approximately $340 million in sales in 2024. This acquisition will enhance AMETEK's product portfolio, particularly within its electronic instruments division. AMETEK's electronic instruments division produces testing and measurement instruments for various markets, including aerospace, medical, research, power, and industrial sectors.
FARO's stock rose to $42.8 per share before the market opened, while AMETEK's stock saw a slight increase.
