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FLIR Systems Acquires Aeryon Labs For UAS Platform Tech

Feb. 04, 2019 2:07 PM ETTeledyne FLIR, LLC (FLIR)BA, LLL-OLD, LMT, NOC, TXT


  • FLIR Systems has acquired Aeryon Labs for $200 million.
  • Aeryon makes Group 1 unmanned aerial drones for government and commercial use.
  • For FLIR, the deal is similar to its Prox Dynamics acquisition, in that it is acquiring the platform on which to integrate its imaging and sensor products.
  • The UAS market is growing rapidly and FLIR is acquiring vertical integration to better differentiate its systems and compete more effectively.
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Quick Take

FLIR Systems (NASDAQ:FLIR) announced it has acquired Aeryon Labs for $200 million.

Aeryon Labs develops high-performance unmanned aerial systems for government and commercial applications.

FLIR is continuing to acquire platforms to integrate its sensor and imaging technologies as it seeks to better compete in a fast-growing market.

Target Company

Waterloo, Canada-based Aeryon was founded in 2007 to develop drones and software capable of providing high-resolution intelligence, surveillance, and reconnaissance data for the global public safety, military, and critical infrastructure markets.

Management is headed by CEO William McHale, who has been with the firm since 2017 and was previously chairman of the board of directors at Masternaut.

Below is an overview video of the Aeryon Vector & SR-EO/IR Mk II:

Source: Aeryon Labs

Aeryon’s primary offerings include:

  • SkyRanger UAS
  • HDZoom30
  • EO/IR Mk-II
  • Payloads & Sensors
  • Flight Operations Software

Investors invested $60 million in the company and include Summit Partners and the MaRS Investment Accelerator Fund.

Source: VentureDeal Venture Capital Database

Market & Competition

According to a market research report by Markets and Markets, the global unmanned aerial vehicles [UAV] market was valued at $20.7 billion in 2018 and is projected to reach $52.3 billion by 2025.

This represents a strong CAGR of 14.5% between 2018 and 2025.

The main drivers for this expected growth are the growing use of UAVs for commercial, government, and military applications.

The Asia-Pacific region is projected to grow at the fastest pace due to high UAV demand.

Major competitive vendors that are developing or providing UAVs include:

  • General Atomics Aeronautical Systems
  • Northrop Grumman (NOC)
  • Boeing (BA)
  • SZ DJI Technology
  • Parrot (PARRO.PA)
  • Lockheed Martin (LMT)
  • Textron (TXT)

Source: Sentieo

Acquisition Terms and Rationale

FLIR disclosed the acquisition price as $200 million but did not disclose terms or other details of the transaction. Management said it

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This article was written by

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