FLIR Systems to Advance Its Unmanned Solutions Strategy with the Acquisition of Endeavor Robotics

Acquisition of Proven Leader in Mission-Critical Robotics Systems for
$385M Will Provide FLIR Entry Into Attractive Unmanned Ground Vehicles
Market for Military, Public Safety, and Critical Infrastructure

WILSONVILLE, Ore.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/acquisition?src=hash” target=”_blank”gt;#acquisitionlt;/agt;–FLIR Systems, Inc. (NASDAQ: FLIR) announced today that it has entered
into a definitive agreement to acquire Endeavor Robotic Holdings, Inc.,
a leading developer of battle-tested, tactical unmanned ground vehicles
(UGVs) for the global military, public safety, and critical
infrastructure markets, from Arlington Capital Partners for $385 million
in cash. Endeavor’s highly-mobile and easy to operate ground robots
utilize advanced sensing and actuation in providing explosive ordnance
disposal, reconnaissance, inspection, and hazardous materials support
for troops, police, and industrial users at stand-off range. Along with
the recent acquisition of Aeryon Labs, FLIR has significantly expanded
its unmanned systems capabilities.


Based outside Boston and formerly known as iRobot Defense & Security,
Endeavor has shipped more than 7,000 UGVs to customers in over 55
countries. Their robots have been deployed in numerous applications,
including by police and SWAT teams, by first responders, and at nuclear
power and industrial plants. Endeavor is one of the largest UGV
providers to the United States (U.S.) Department of Defense (DoD), and a
key supplier of unmanned systems for the accelerating modernization of
global military and law enforcement operational assets. Having recently
been awarded the U.S. Army’s Man Transportable Robotic System Increment
II (MTRS Inc II) contract, Endeavor is a major participant in several
programmatic opportunities with the U.S. DoD and its ally militaries
worldwide.

“The acquisition of Endeavor Robotics, coupled with previous
acquisitions of Aeryon Labs and Prox Dynamics, has positioned FLIR as a
leading unmanned solutions provider and advances the strategy we
detailed at our Investor Day last year,” said Jim Cannon, President and
CEO of FLIR Systems. “This acquisition aligns with our evolution from
sensors to intelligent sensing and ultimately solutions that save lives
and livelihoods. Endeavor’s momentum with the U.S. DoD and other global
defense and police forces provides us significant opportunity to
participate in long-term franchise programs and will help us create
growth for the company.”

Having the largest deployed fleet of tactical robotics systems in the
world, Endeavor has over 30 years of proven experience in advanced
ruggedized UGVs. The company’s family of UGVs covers a broad spectrum of
robot weight classes, from the five-pound throwable FirstLook®
reconnaissance robot to the 500-pound Kobra heavy-lift
robot, and all models are controllable under one common command and
control system. Endeavor’s modular approach to design also allows for
varying payloads and sensor systems for the needs of each customer,
including imaging and reconnaissance, vehicle and room inspection, bomb
disposal, hazardous materials detection and disposal, radiation
monitoring, and route clearance.

“Joining forces with FLIR Systems will allow Endeavor to take its
life-saving technology to the next level, so we can better serve the
warfighter, the police officer, and the first responder who use our
robots on the frontlines every day,” said Sean Bielat, CEO of Endeavor.
“We’re excited to be part of a company that sees its strategic growth in
unmanned systems and will invest in our products, platforms and people.
It is a tremendous fit and we look forward to the mission ahead.”

Upon closing of the acquisition, which is expected in the first quarter
of 2019, Endeavor will be part of the FLIR Government and Defense
Business Unit’s Unmanned Systems and Integrated Solutions division. The
transaction is expected to be $0.03 dilutive to FLIR Systems’ 2019
adjusted earnings per share due to borrowing costs associated with
funding the transaction, and accretive thereafter. FLIR Systems’
management will discuss this strategic acquisition during its 2018 Q4
earnings call scheduled for February 13, at 9 a.m. Eastern Standard Time.

About FLIR Systems

Founded in 1978 and headquartered in Wilsonville, Oregon, FLIR
Systems is a world-leading maker of sensor systems that enhance
perception and heighten awareness, helping to save lives, improve
productivity, and protect the environment. Through its nearly 3,700
employees, FLIR Systems’ vision is to be “The World’s Sixth Sense” by
leveraging thermal imaging and adjacent technologies to provide
innovative, intelligent solutions for security and surveillance,
environmental and condition monitoring, outdoor recreation, machine
vision, navigation, and advanced threat detection. For more information,
please visit
http://www.flir.com
and follow
@flir.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may contain words such as “anticipates,”
“estimates,” “expects,” “intends,” and “believes” and similar words and
expressions and include the assumptions that underlie such statements.
Such statements are based on current expectations, estimates, and
projections based, in part, on potentially inaccurate assumptions made
by management. Forward-looking statements include but are not limited
to: statements about the expected timing and completion of the proposed
acquisition; the anticipated effect of the acquisition; including the
costs associated with the transaction, the impact of financing the
transaction and express and implied benefits from the acquisition; the
benefit of acquired technology and capabilities, plans and expectations
for the acquired entity; the risk that the parties may not be able to
obtain necessary regulatory approvals; risks related to disruption of
management time as a result of the acquisition and other statements not
historical facts. These statements are not guarantees of future
performance and involve risks and uncertainties that are difficult to
predict. Therefore, actual outcomes and results may differ materially
from what is expressed or forecasted in such forward-looking statements
due to numerous factors. Such forward-looking statements speak only as
of the date on which they are made and FLIR Systems does not undertake
any obligation to update any forward-looking statement to reflect events
or circumstances after the date of this release, or for changes made to
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Contacts

Media
Tim McDowd
503-498-3146
tim.mcdowd@flir.com

Investor Relations
Jay Gentzkow
503-498-3809
Jay.Gentzkow@flir.com

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