FLIR Systems Inc (FLIR - Analyst Report) announced the acquisition of certain assets of DigitalOptics Corporation's micro-optics business. The deal is valued at $14.9 million, which includes fabrication equipment and more than 200 patents.
Based in Charlotte, N.C., DigitalOptics micro-optics business is a leading fabricator of wafer-scale specialty optics products, which include lenses, lens arrays, optical receivers and transceivers and various infrared optical components. DigitalOptics is a wholly-owned subsidiary of Tessera Technologies, Inc. (TSRA) and is primarily engaged in designing and manufacturing of innovative imaging systems for smartphones.
Through this acquisition, FLIR intends to strengthen its Thermal Vision and Measurement segment. DigitalOptics' micro-optics business products primarily include low-cost optics technologies and are thus used in a number of industries and applications that include security, surveillance, photolithography, data communications, laser-based medical equipment and 3D gesture recognition.
In the latest reported quarter, revenues for the Thermal Vision and Measurement segment (TVM) grew 23% to $175 million. The segment also reported strong growth in orders, increasing 24% year over year.
The acquisition is in line with FLIR’s growth strategy of expanding business through various strategic acquisitions. The TVM segment provides thermal imaging and night vision systems, personal vision thermal cameras, imaging algorithms, hand-held systems, infrared imagers, and test equipment; and camera cores, sensors, and readout integrated circuits.
FLIR Systems is a leading designer, manufacturer and marketer of thermal imaging systems. The company carries a Zacks Rank #3 (Hold). Some other companies in the industry that are worth a look include Raytheon Co. (RTN - Analyst Report), Orbital Sciences Corp. (ORB - Snapshot Report) and AAR Corp. (AIR - Analyst Report). RTN carries a Zacks Rank #1 (Strong Buy), while ORB and AIR have a Zacks Rank #2 (Buy).