AMETEK to Acquire FARO Technologies
Rhea-AI Summary
AMETEK (NYSE: AME) has announced a definitive agreement to acquire FARO Technologies (Nasdaq: FARO) for $44 per share in cash, representing a 40% premium over FARO's closing price on May 5, 2025. The transaction values FARO at an enterprise value of approximately $920 million.
FARO Technologies, founded in 1981 and headquartered in Lake Mary, Florida, is a leading provider of 3D measurement and imaging solutions with annual sales of $340 million. The acquisition will integrate FARO into AMETEK's Ultra Precision Technologies division, complementing their existing Creaform business. The transaction, unanimously approved by both companies' boards, is expected to close in the second half of 2025, subject to regulatory approvals and FARO shareholders' approval.
Positive
- 40% premium offered to FARO shareholders at $44 per share
- Strategic expansion into 3D metrology and imaging solutions market
- Complementary fit with AMETEK's existing Creaform business
- Addition of $340 million in annual sales to AMETEK's revenue
- Opportunities for growth and margin expansion through operational synergies
Negative
- Significant capital outlay of $920 million in enterprise value
- Transaction subject to regulatory and shareholder approval risks
- Integration challenges may affect operational efficiency
News Market Reaction 1 Alert
On the day this news was published, FARO gained 34.69%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Founded in 1981 and headquartered in
"FARO is an outstanding acquisition for AMETEK and an excellent strategic fit with our Ultra Precision Technologies division," comments David A. Zapico, AMETEK Chairman and Chief Executive Officer. "FARO's differentiated 3D metrology and imaging solutions expand our presence in attractive growth markets. Its strong brand, global customer base, employees and technology capabilities complement our existing Creaform business and provide compelling opportunities for growth and margin expansion."
"We are excited to join AMETEK and its portfolio of industry-leading technology businesses," said Peter Lau, President, Chief Executive Officer & Director of FARO Technologies. "With AMETEK's global scale, operational excellence, and commitment to innovation, we are well-positioned to accelerate our growth and continue delivering cutting-edge solutions to our customers around the world."
The closing of the transaction is subject to customary closing conditions, including applicable regulatory approvals. The closing of the transaction is also subject to approval of FARO Technologies shareholders. The transaction is expected to be completed in the second half of 2025.
About AMETEK
AMETEK (NYSE: AME) is a leading global provider of industrial technology solutions serving a diverse set of attractive niche markets with annual sales of approximately
About FARO Technologies
For more than 40 years, FARO Technologies has provided industry-leading technology solutions that enable customers to measure their world, and then use that data to make smarter decisions faster. FARO continues to be a pioneer in bridging the digital and physical worlds through data-driven reliable accuracy, precision, and immediacy. For more information, visit www.faro.com.
Forward Looking Statements
Statements in this release that are not strictly historical, including statements regarding the proposed merger, the expected timetable for completing the merger and any other statements regarding events or developments that we believe or anticipate will or may occur in the future, may be "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things: general economic conditions and conditions affecting the industry in which FARO operates; the uncertainty of regulatory approvals; adoption of the merger agreement by FARO shareholders; the parties' ability to satisfy the closing conditions and consummate the merger; AMETEK's ability to successfully integrate FARO's operations and employees with AMETEK's existing business; and the ability to realize anticipated growth, synergies and cost savings. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in AMETEK's and FARO's respective Securities and Exchange Commission (the "SEC") filings, including each company's most recent, respective Annual Report on Form 10-K and Quarterly Report on Form 10-Q. These forward-looking statements speak only as of the date of this release and neither company assumes any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
Additional Information and Where to Find It
This communication relates to the proposed merger of FARO Technologies into a wholly owned subsidiary of AMETEK, pursuant to the terms of the merger agreement. A special meeting of the shareholders of FARO Technologies will be announced as promptly as practicable to seek shareholder approval in connection with the proposed merger. FARO expects to file with the SEC a proxy statement and other relevant documents in connection with the proposed merger. INVESTORS AND SHAREHOLDERS OF FARO TECHNOLOGIES ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT MATERIALS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FARO, AMETEK, MERGER SUB AND THE MERGER. Shareholders may obtain a free copy of these materials (when they are available) and other documents filed by FARO with the SEC at the SEC's website at www.sec.gov, at FARO's website at http://www.faro.com or by sending a written request to FARO's Corporate Secretary at its principal executive offices at 125 Technology Park,
Participants in the Solicitation
FARO Technologies, its directors and certain of its executive officers and employees may be deemed to be participants in soliciting proxies from FARO's shareholders in connection with the merger. Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of FARO Technologies shareholders in connection with the merger and any direct or indirect interests they have in the merger will be set forth in FARO's definitive proxy statement for its special shareholder meeting when it is filed with the SEC. Information relating to the foregoing can also be found in FARO's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 24, 2025 and their definitive proxy statement for its 2025 Annual Meeting of Shareholders (the "Annual Meeting Proxy Statement") filed with the SEC on April 10, 2025. To the extent that holdings of FARO's securities by the directors and executive officers of FARO have changed from the amounts set forth in the Annual Meeting Proxy Statement, such changes have been or will be reflected on Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC.
Contacts:
Kevin Coleman
Vice President, Investor Relations and Treasurer
AMETEK, Inc.
kevin.coleman@ametek.com
Phone: 610-889-5247
Matthew Horwath
Chief Financial Officer
FARO Technologies, Inc.
IR@FARO.com
Phone: 407-562-5005
Erica Mannion & Mike Funari
Sapphire Investor Relations, LLC
FARO Technologies, Inc.
IR@FARO.com
Phone: 407-562-5005
View original content:https://www.prnewswire.com/news-releases/ametek-to-acquire-faro-technologies-302446644.html
SOURCE AMETEK, Inc.
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