Teledyne has bought FLIR Systems, consolidating two major companies in the sensor industry.  The purchase, for around $8 billion in cash and stock, will combine these two major image sensor manufacturers.

“Our respective companies are perfectly complementary with minimal overlapping technologies and markets,” said Teledyne Executive Chairman Robert Mehrabian in describing the deal on an analyst call on Monday.

“The deal combines companies that both make sensors but each makes image sensors that are based on different chips for different wavelengths of light,” Fierce Electronics noted.

The systems each manufacture serve different markets for autonomous and unmanned  systems, with FLIR reaching markets across air and land while Teledyne is focused on subsea markets, Mehrabian added.

While FLIR is focused on the larger infrared market, Teledyne’s proprietary imaging sensors function in the x-ray, ultraviolet, visible light and near infrared wavelengths, along with millimeter, microwave and radio.

 Teledyne serves a niche aerospace market and FLIR focuses on commercial thermography, auto, consumer and other markets.  “Teledyne’s infrared detector tech works on mercury cadmium telluride while Flur’s uses indium antimonide, microbolometer/thermal/uncooled, indium gallium arsenide and quantum well infrared photodetector, according to a Teledyne slide,” Fierce Electronics noted.

Teledyne’s 2020 sales were $3.1 billion while FLIR’s reached $1.9 billion.

FLIR’s imaging technology used in iPhones and BMW luxury models will become important in future advanced driver assist systems and autonomous vehicles.

Image sensors comprise a global market valued at nearly $20 billion in 2020. Meanwhile, the market for thermal image cameras is also robust, about $2 billion in 2020, according to Fortune Business Insights.

More consolidation within the thermal camera market is expected.