FLIR Systems can see clearly now

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Monday, December 1, 2003

PORTLAND, Ore. - A thermal imaging company and a provider of infrared cameras are coming together in a deal that will help bring infrared and other camera technologies to the mainstream.

In late October, FLIR Systems, based here, announced plans to buy Indigo Systems of Goleta, Calif., in a transaction valued at approximately $190 million. Company officials expect the deal to be completed in the beginning of 2004.

“Flir and Indigo were formidable competitors,” said Tim Fitzgibbons, president and chief executive officer of Indigo Systems. “Combined, it’s going to be a real, hard-to-stop entity.”

The two companies each bring unique aspects to the table. Indigo Systems makes infrared cameras and detectors primarily used in commercial and military applications. FLIR Systems uses infrared

technology in its thermal imaging cameras and plans to integrate Indigo Systems’ technology into its products.

“We had been talking for a number of quarters about having an objective to procure an in-house supply of infrared detectors,” said Tony Trunzo, senior vice president of corporate strategy and development for FLIR Systems. “By having that capability in-house we believe we’ll be able to lower our cost of procuring detectors.”

Indigo Systems gains a strong channel in the commercial market where FLIR Systems does half its business. “This actually will allow Indigo to pursue its continued dream of putting infrared into numerous markets,” said Fitzgibbons.

While each company brings different technology to the deal, both are substantial companies. Indigo Systems employs 210 people, while FLIR Systems has more than 800 employees.

But despite their size, company officials expect little overlap. Trunzo said Indigo’s office will operate as a third location for its imaging division. “We think we’ve combined the two best companies in the commercial, infrared business,” he said.