AMETEK Inc. has officially completed its strategic acquisition of FARO Technologies, marking a significant milestone in its growth trajectory. The acquisition, valued at approximately $920 million net of cash acquired, was finalized following shareholder approval and regulatory clearance. FARO Technologies, a leader in 3D metrology and digital reality solutions, will now operate within AMETEK’s Ultra Precision Technologies Division under the Electronic Instruments Group.
This acquisition enhances AMETEK’s precision measurement capabilities and expands its footprint into high-growth market segments. FARO’s portfolio includes advanced portable measurement arms, laser scanners, trackers, and software solutions, serving diverse end markets with annual sales of around $340 million.
From a financial perspective, AMETEK reported \(6.94 billion in revenue and \)1.38 billion in net income for the fiscal year 2024. The \(920 million acquisition represents approximately 13.3% of AMETEK's annual revenue, indicating a substantial investment aimed at bolstering its technological edge and market reach. Operating income for 2024 stood at \)1.78 billion, underscoring AMETEK’s strong profitability and operational efficiency.
David A. Zapico, AMETEK Chairman and CEO, emphasized the strategic importance of this acquisition: “We are pleased to announce the closing of this highly strategic acquisition and are excited to welcome the FARO Technologies team to AMETEK. FARO’s leadership in 3D metrology and digital reality solutions enhances our capabilities in precision measurement and supports our expansion into attractive market segments.”
This move aligns with AMETEK’s Growth Model, which integrates operational excellence, technology innovation, global and market expansion, and strategic acquisitions to drive double-digit earnings per share growth over the business cycle.
Looking ahead, the integration of FARO is expected to generate synergies and cost savings, further strengthening AMETEK’s competitive position. Investors should monitor how this acquisition impacts AMETEK’s financial statements in upcoming quarters, particularly in revenue growth and operating margins.
For more detailed information, the original 8-K filing can be accessed here: AMETEK FARO Acquisition 8-K.
Tags: AME, AMETEK, FY2024, FARO Technologies Acquisition, 3D Metrology, Precision Measurement