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BERWYN, Pa. and LAKE MARY, Fla. - AMETEK, Inc. (NYSE: AME), a company currently trading near its InvestingPro Fair Value with a market capitalization of $39.3 billion, has announced a definitive agreement to purchase all outstanding shares of FARO Technologies, Inc. (Nasdaq: FARO) for $44 per share in cash. This deal, announced today, values FARO at an enterprise value of approximately $920 million and represents a 40% premium over FARO’s closing stock price as of Monday.
FARO, a leading provider of 3D measurement and imaging solutions with annual sales of around $340 million, will become part of AMETEK’s Ultra Precision Technologies division. This acquisition is expected to bolster AMETEK’s portfolio in various growth markets, given FARO’s strong brand and global customer base. AMETEK, which generated revenues of $6.9 billion in the last twelve months, has maintained strong financial health with an InvestingPro Financial Health Score of "GOOD" and robust cash flows that sufficiently cover its interest payments.
David A. Zapico, AMETEK Chairman and CEO, stated that the acquisition aligns well with AMETEK’s growth strategy and will offer opportunities for growth and margin expansion. Peter Lau, President and CEO of FARO Technologies, expressed enthusiasm about joining AMETEK, highlighting the potential for accelerated growth and innovation.
The transaction is subject to customary closing conditions, including regulatory approvals and the approval of FARO Technologies shareholders. The companies anticipate the deal will close in the second half of 2025.
AMETEK, with annual sales of approximately $7.0 billion, is a global provider of industrial technology solutions and has been listed on the NYSE for over 90 years. FARO Technologies has been a pioneer in 3D measurement for over 40 years, bridging the digital and physical worlds with its solutions.
The press release also contains forward-looking statements regarding the merger’s expected completion and benefits. However, these are subject to various factors that could cause actual events to differ materially. According to InvestingPro data, AMETEK has demonstrated strong financial discipline, maintaining dividend payments for 55 consecutive years and achieving a 10.7% dividend growth in the last twelve months. For deeper insights into AMETEK’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Investors and shareholders of FARO Technologies are advised to read the definitive proxy statement and other relevant materials when they become available, as they will contain important information about the proposed merger.
This news is based on a press release statement from AMETEK, Inc.
In other recent news, Ametek Inc reported its first-quarter 2025 financial results, revealing an earnings per share (EPS) of $1.75, which exceeded analysts’ expectations of $1.69. However, the company’s revenue slightly missed projections, coming in at $1.73 billion compared to the forecasted $1.74 billion. Despite the earnings beat, the revenue shortfall raised concerns among investors. Ametek’s operating income increased by 2% year-over-year, reaching $455 million, while the company maintained strong operating margins at 26.3%. The company also demonstrated robust free cash flow generation, reporting $394 million for the quarter. In terms of guidance, Ametek anticipates full-year sales to rise in the low single digits, with EPS expected to increase by 3-5%. Additionally, the company plans to invest $85 million in research and development to support future growth. Analysts have not reported any recent upgrades or downgrades for Ametek, but they continue to monitor the company’s performance closely.
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