Industrial tools maker AMETEK (AME.N) will acquire FARO Technologies (FARO.O) at an enterprise value of about $920 million, the two companies said on Tuesday, sending the target firm's shares soaring 36% before the bell.
Under the agreement, AMETEK is offering $44 per share in cash, representing about a 40% premium to FARO's last close. The equity valuation pegs FARO's market value at $846 million.
The acquisition is expected to be completed in the second half of the year.
FARO Technologies, which produces 3D measurement and imaging solutions including portable measurement arms, laser scanners and trackers, among others, generated about $340 million in sales in 2024.
The transaction will boost AMETEK's precision technology portfolio in the electronic instruments division, which produces test and measurement instruments for sectors such as aerospace, medical, research, power and industrial markets.
FARO's shares rose to $42.8 a piece in premarket trading, while AMETEK shares were flat.
"We are finding opportunities created by the tariffs to take advantage of our substantial U.S. manufacturing footprint to broaden our customer base and support their growth in the U.S.," CEO David Zapico said on Thursday.
