December 21, 2012—Thermal sensor manufacturer FLIR Systems (U.S.A.) has announced the successful completion of its previously planned acquisition of video surveillance system provider Lorex Technology (Canada) for US$60 million, the equivalent of $1.32 per share. FLIR announced the agreement to acquire Lorex on October 25, 2012, subject to certain conditions. The transaction was completed by a FLIR subsidiary purchasing all the outstanding shares of Lorex followed by the amalgamation of that purchasing subsidiary with Lorex, resulting in Lorex becoming a wholly-owned subsidiary of FLIR.
The Ontario Superior Court of Justice (Commercial List) gave final court approval of the proposed plan, which enabled the completion of the acquisition. The plan of arrangement was also approved by Lorex's shareholders on December 13, 2012 at a special meeting.
Lorex is a pioneer in home security video surveillance systems that can be installed by the user as well as a provider of video surveillance products to security system integrators. Lorex provides homes and businesses with bundled video security cameras and monitoring systems that include connected visible light video cameras, illuminated infrared cameras, digital video recorders, video monitors, baby monitors and wearable action sports cameras. The company sells its solutions through retailers such as Costco, BJ's Wholesale, Amazon.com and BestBuy.com, as well as through distributors of large-scale security solutions.
"Adding Lorex will complement our product and distribution capabilities in our existing security markets," said Earl Lewis, president and CEO of FLIR. "Additionally, we believe the business will provide us an opportunity to expand our reach into several new markets as we continue our strategy of lowering the cost to own thermal technology."
In their third-quarter earnings announcement, FLIR announced that the acquisition of Lorex is expected to grow the company’s 2013 net earnings.