Teledyne Technologies, a multinational conglomerate based in Thousand Oaks, will spend around $8 billion in cash and stock to buy Flir Systems, a thermal imaging company with a manufacturing and research and development facility in Goleta.

The deal was announced early in the morning on Jan. 4, and has been approved by the boards of both publicly traded companies, the companies said in a joint news release.

Shares of Teledyne tumbled after the announcement, while shares of Flir rose sharply. Teledyne opened at $352.78 on Monday morning, 10% below its price when the market closed on Dec. 31, the previous trading day. Flir opened at $53.04, up 21% from its Dec. 31 closing price.

Under the terms of the deal, Flir stockholders will receive $28 per share in cash and 0.0718 shares of Teledyne stock for each share of Flir stock. That adds up to around $8 billion in total compensation and values Flir at $56 per share, based on Teledyne’s volume-weighted average share price for the five days before the deal was announced.

However, when taking into account the dip in Teledyne stock on Jan. 4 after the deal was announced, the valuation drops to $53.33 per share for Flir.

Both companies in the deal have strong ties to the tri-county region. Teledyne is based in Thousand Oaks and is the region’s third most valuable publicly traded company, with a market capitalization of $13.2 billion on Jan. 4.

Flir is based in Oregon but has a presence in Goleta due to its 2004 acquisition of Indigo Systems, a UCSB spinoff that developed and produced infrared detectors and cameras. The Goleta unit has continued to do that work under Flir’s ownership.

Teledyne also released its preliminary financial results on Jan. 4 for the fourth quarter and full year of 2020. Teledyne said it expects fourth quarter earnings per share in the range of $3.16 to $3.19, an all-time high for a single quarter. Full-year earnings are projected at $10.30 to $10.33 per share, slightly below last year’s earnings of $10.73 per share but above the company’s earlier projects of $9.70 to $10 per share.

Teledyne also expects a record-high operating margins of 17% for the fourth quarter and sales of around $800 million, down from $834.2 million in the fourth quarter of 2019. Teledyne expects to close the year with around $115 million in net debt.