Business Combinations, Goodwill and Acquired Intangible Assets

3 Months Ended

Apr. 04, 2021

Business Combinations [Abstract]

Business Combinations, Goodwill and Acquired Intangible Assets

Business Combinations, Goodwill and Acquired Intangible Assets

Pending Acquisition of FLIR Systems, Inc.

On January 4, 2021, Teledyne and FLIR Systems, Inc. (“FLIR”) entered into a definitive agreement under which Teledyne will acquire FLIR in a cash and stock transaction valued at approximately $8.0 billion. Under the terms of the agreement, FLIR stockholders will receive $28.00 per share in cash and 0.0718 shares of Teledyne common stock for each FLIR share, which implied a total purchase price of $56.00 per FLIR share based on Teledyne’s 5-day volume weighted average price as of December 31, 2020. The transaction is expected to close on May 14, 2021 subject to the receipt of required remaining regulatory approvals, including approvals of Teledyne and FLIR stockholders and other customary closing conditions. In the first quarter of 2021, Teledyne completed various financing activities related to the pending acquisition of FLIR. See Note 10 to these Notes to Condensed Consolidated Financial Statements for information regarding financing activities undertaken in connection with the pending acquisition.

Acquisition of the OakGate Technology, Inc.

On January 5, 2020, we acquired OakGate Technology, Inc. (“OakGate”) for $28.5 million in cash, net of cash acquired. Based in Loomis, California, OakGate provides software and hardware designed to test electronic data storage devices from development through manufacturing and end-use applications. OakGate is part of the Test and Measurement product line of the Instrumentation segment. Teledyne funded the acquisition with cash on hand. The results of the OakGate acquisition have been included in Teledyne’s results since the date of the acquisition. Goodwill resulting from the acquisition of OakGate is not deductible for tax purposes.

Goodwill and Acquired Intangible Assets

Teledyne’s goodwill was $2,140.1 million at April 4, 2021 and $2,150.0 million at January 3, 2021. The decrease in the balance of goodwill in 2021 primarily related to exchange rate changes during the period. Teledyne’s net acquired intangible assets were $397.1 million at April 4, 2021 and $409.7 million at January 3, 2021. The decrease in the balance of net acquired intangible assets resulted from amortization of acquired intangible assets and exchange rate changes. The Company completed the process of specifically identifying the amount assigned to certain assets, including acquired intangible assets, and liabilities and the related impact on taxes and goodwill for the OakGate acquisition.