Teledyne Technologies, Inc. TDY recently completed the acquisition of select aerospace and defense electronics businesses from Excelitas Technologies Corp. for nearly $710 million.

The acquiree offers a wide range of products for the space, satellite and defense industries. The acquired asset includes the optical systems business known under the Qioptiq brand, based in Northern Wales, UK, and the U.S.-based advanced electronic systems business.

How Will the Buyout Benefit Teledyne?
 

The acquisition of some selected assets of Excelitas’ aerospace and defense electronics businesses is expected to strengthen Teledyne’s footprint in the aerospace and defense industry. Acquired assets provide advanced optics for heads-up and helmet-mounted displays, dismounted tactical night vision systems and proprietary glass and custom energetics, including electronic safe & arm devices, high-voltage semiconductor switches and rubidium frequency standards to meet the needs of the defense, space and satellite customers.

The acquired assets will be added to Teledyne’s Aerospace and Defense Electronics segment and operate under the name Teledyne Qioptiq.

TDY’s Acquisition Spree
 

The military industry has seen an increase in mergers and acquisitions due to factors such as a growing emphasis on cost-cutting initiatives and diversifying portfolios to combat competition. These transactions are becoming more significant, allowing businesses to expand their operations, gain access to new skills, develop technologies, and produce higher-quality goods and services.

Teledyne has also been engaged in strategic acquisitions, like the latest one. Prior to this acquisition, the company announced the acquisition of Micropac, a designer and producer of microelectronic circuits, optoelectronic components and power products. Such acquisitions are expected to boost TDY’s position in the defense market.

Acquisitions Among Other Defense Players
 

Other defense companies that have recently indulged in acquisition deals are as follows:

In January 2025, Curtiss-Wright Corporation CW announced the acquisition of Ultra Energy for $200 million in cash.  The buyout is expected to expand Curtiss-Wright’s portfolio with highly complementary, crucial measurement and control solutions for upgrading current commercial nuclear power plants and designing new and advanced power plants, such as compact modular reactors.

CW has a long-term (three to five years) earnings growth rate of 11.9%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 6.8% from the 2024 estimated figure.

On Feb. 3, 2025, HEICO Corporation HEI declared that its Flight Support Group has acquired 90% of Millennium International, a leader in providing business and regional jet avionics repair solutions. This buyout is expected to strengthen HEICO’s footprint in the aerospace and defense industry.

HEI has a long-term earnings growth rate of 17.4%. The Zacks Consensus Estimate for its fiscal 2025 sales implies an improvement of 9.1%.

TDY Stock Price Movement
 

In the past three months, Teledyne shares have risen 10.8% compared with the industry’s growth of 8.3%.

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TDY’s Zacks Rank & A Stock to Consider
 

TDY currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the same industry is Kratos Defense & Security Solutions, Inc. KTOS, which currently has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for KTOS’ 2025 sales is pegged at $1.28 billion, which indicates year-over-year growth of 12.2%. The Zacks Consensus Estimate for 2025 earnings per share stands at 59 cents, which implies year-over-year growth of 27.9%.

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Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report

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