AMETEK to Acquire FARO Technologies in $920 Million Deal

AMETEK, Inc. (NYSE: AME) announced on May 6, 2025, its intention to acquire FARO Technologies, Inc. (NASDAQ: FARO) for $44 per share in cash, valuing the 3D measurement solutions provider at approximately $920 million. This offer represents a 40% premium over FARO's closing price on May 5, 2025. The acquisition aims to bolster AMETEK's Ultra Precision Technologies division by integrating FARO's advanced 3D metrology and imaging solutions.

Founded in 1981 and headquartered in Lake Mary, Florida, FARO Technologies specializes in 3D measurement and imaging solutions, including portable measurement arms, laser scanners, and software solutions. The company reported annual sales of approximately $340 million in 2024. AMETEK, established in 1930 and based in Berwyn, Pennsylvania, is a global provider of industrial technology solutions with annual sales of about $7.0 billion.

David A. Zapico, AMETEK's Chairman and CEO, stated, "FARO's differentiated 3D metrology and imaging solutions expand our presence in attractive growth markets." Peter Lau, President and CEO of FARO Technologies, expressed enthusiasm about the merger, noting that AMETEK's global scale and commitment to innovation would accelerate FARO's growth and enhance its ability to deliver cutting-edge solutions to customers worldwide.

The transaction has been unanimously approved by the boards of both companies and is expected to close in the second half of 2025, pending regulatory approvals and FARO shareholder consent.

However, the proposed acquisition has attracted regulatory scrutiny. Reports emerged on May 23, 2025, indicating that the deal is under antitrust review due to the close competition between AMETEK and FARO in the 3D laser projection market. Industry sources suggest that combining these two competitors could reduce competition in this sector.

In addition to regulatory concerns, shareholder groups and legal firms are questioning the fairness of the $44-per-share offer. Law firm Kahn Swick & Foti, LLC (KSF) has initiated an investigation into whether the offer adequately reflects FARO's intrinsic value and if the negotiation process was conducted fairly. Shareholders are being urged to scrutinize the transaction's terms and consider its implications for their returns.

Following the acquisition announcement, FARO's stock surged 36% in premarket trading, reflecting investor optimism about the deal. AMETEK's stock remained relatively stable, indicating market confidence in the strategic fit of the acquisition.

AMETEK's strong financial position supports the acquisition. With a market capitalization of $39.3 billion and $394 million in free cash flow reported in Q1 2025, the company has ample liquidity. The $920 million acquisition price is approximately 2.4% of its market value, suggesting a manageable financial impact. AMETEK has also reaffirmed its full-year guidance of low single-digit sales growth and 3–5% EPS growth, indicating confidence in absorbing the acquisition's costs while maintaining profitability.

The consolidation of two major players in the 3D measurement and imaging sector could lead to reduced competition, potentially affecting pricing and innovation within the industry. The close competition between AMETEK and FARO in the 3D laser projection market may attract antitrust scrutiny, potentially delaying or altering the terms of the acquisition. Investigations into the fairness of the deal's terms may influence shareholder sentiment and voting, potentially impacting the acquisition's approval process.

As of July 1, 2025, AMETEK's stock is trading at $183.90, while FARO's stock is trading at $43.95.

The proposed acquisition of FARO Technologies by AMETEK represents a strategic move to enhance its technological capabilities and market presence. However, regulatory scrutiny and shareholder concerns present significant hurdles that could impact the deal's successful completion.