3D measuring, imaging firm Faro soars to 3-year high on news of its acquisition

Shares of Faro Technologies, which produces 3D measurement and imaging solutions for the manufacturing, construction, and public safety analytics industries, jumped nearly 35% yesterday, May 6, after the company announced it would be acquired at a premium by Ametek, a global designer and manufacturer of electronic instruments and electromechanical devices.

Faro surged nearly 35% on the Nasdaq yesterday to close at $42.36 per share, its highest mark since late April 2022. This morning, the stock has pulled back slightly, down around 1% as of this writing.

Yesterday, Faro announced that all its shares would be acquired for $44 each by Ametek, which describes itself as a global leader in industrial technology solutions. The offer represents roughly a 40% premium over Faro’s closing price on Monday, the day before the deal was announced. Even after the rally, however, the share price remained below the $44 mark, which MarketWatch noted may reflect investor skepticism about the likelihood of the deal closing.

The acquisition is expected to be completed in the second half of the year, having already been approved by both boards. However, it still requires approval from Faro shareholders.

Shares of Ametek fell 1.4% yesterday to $167.85 apiece.

Founded in 1981, Faro is described in the acquisition announcement as a leading provider of 3D measurement and imaging solutions. Its products include handheld and laser scanning tools, as well as geospatial equipment that allows for on-the-go 3D data collection used in mapping and surveying hard-to-reach areas.

Faro’s 3D metrology and visualization tools will expand Ametek’s presence in high-growth markets, said Ametek CEO David A. Zapico, as quoted in the press release. The acquisition, he added, will complement Ametek’s existing business and provide opportunities to enhance margins and overall growth.

Faro, for its part, believes the deal will accelerate its growth, according to President and CEO Peter Lau.

The acquisition will further solidify Ametek’s leading position in precision instrumentation while providing Faro with the resources and scale needed to accelerate innovation and expand its market presence, stated a report on Noble Financial Group’s Channelcheck investor portal.

In the first quarter, Faro reported a 1.6% year-over-year decline in revenue to $82.9 million. However, it posted a net profit of $0.9 million versus a $7.3 million loss in the same period in 2024. Ametek, meanwhile, reported revenue of $1.73 billion for the first quarter, unchanged from the previous year.

According to MarketWatch, Faro has only two analyst ratings on Wall Street, one “buy” and one “hold.” The average target price of $41 per share is below current quotes.