Flir to acquire sensor maker ICx for $274 million

Flir Systems, Inc., maker of thermal imaging technology, announced on Monday, 16 August, that it was acquiring ICx Technologies, Inc., maker of chemical and biological detectors, for a total of $274 million.

The merger will give Flir the capability to expand into the market for advanced sensors for chemical, biological, radiological, and nuclear explosives (CBRN) detection for homeland security and defense. It is also expected to boost Flir’s existing intelligence, surveillance, and reconnaissance product line.

Businessweek reports that the boards of both Flir and ICx have approved the acquisition agreement, as has ICx’s largest shareholder, Wexford Capital LP. Portland-based Flir is offering $7.55 per share in cash for ICx. ICx said Wexford Capital LP and its funds have agreed to tender 62 percent of ICx’s outstanding shares to Flir’s offer. The company had a cash balance of $38 million at the end of June.

When the deal is closed, ICx’s entire operation will be merged into Flir’s Government Systems Division in Arlington, Virginia.

ICx, which is also based in Arlington, Virginia, employs approximately 800 people, half of whom have Ph.D.s in science and engineering-related fields. Many of its CBRN detection devices are hand-held, or at least mobile, but they can also be installed in security card readers, air conditioning systems and vehicles.

ICx also offers a CBRN detection suite that can be installed to protect an entire office, building, or complex. To complement their CBRN products they also deal in video and radar devices as well as security command and control systems.

Other Flir divisions make products for commercial markets, but Flir’s Government Systems Division relies on government customers who use hand-held and fixed vehicle-mounted thermal imaging systems for force protection, counterterrorism, search and rescue, navigation, law enforcement, narcotics interdiction, border patrol and anti-piracy.