Teledyne to buy British imaging sensor provider E2V Technologies for $782 mn

US industrial conglomerate Teledyne Technologies Inc, yesterday struck a deal to buy British imaging sensor provider E2V Technologies Plc for $782 million (£620 million) in cash.

Under the terms of the deal that has been approved by the board of both companies, E2v shareholders will receive 275 pence in cash for each share, a premium of 48 per cent to E2v's Friday closing price.

E2V said Teledyne had received acceptances from about 45 per cent of E2V shareholders.

It is expected that, subject to the satisfaction or waiver of all relevant conditions, the acquisition will be completed in the first half of calendar 2017.

E2V provides high performance image sensors and custom camera solutions and application specific standard products for the machine vision market.

The Chelmsford, England-based company also provides high performance space qualified imaging sensors and arrays for space science and astronomy and produces components and subsystems that deliver high reliability radio frequency power generation for healthcare, industrial and defense applications.

For the year ended 31 March 2016, e2V had sales of approximately £236 million.

Teledyne, based in California, is a leading provider of sophisticated instrumentation, digital imaging products and software, aerospace and defense electronics, and engineered systems.

Its operations are primarily located in the US, Canada, the UK, and Western and Northern Europe.

''We have followed e2V for more than a decade. Over time, as both Teledyne and e2V evolved, our businesses have become increasingly aligned. In fact, every business within e2V is highly complementary to Teledyne,'' said Robert Mehrabian, chairman, president and CEO of Teledyne.

''For example, we are both leaders in space and astronomy imaging, but Teledyne largely provides infrared detectors and e2V provides visible light sensors. While we both provide microwave devices, e2V's largest product and market are magnetrons for cancer radiotherapy. Teledyne supplies solid state and vacuum microwave systems, but no magnetrons, and we primarily serve defense markets such as electronic warfare, radar and communications. However, Teledyne serves the healthcare market with specialized X-ray sensors, he added.

Neil Johnson, chairman of e2V, commented, ''The Board of e2V has also considered the merits of being part of a larger, complementary group with enhanced scale and a wider range of capabilities to service its key customers and management and employees having access to the opportunities available in a larger group.''