Who Owns FARO Company?

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Who Really Owns FARO Technologies?

Understanding the ownership structure of FARO SWOT Analysis is crucial for investors and industry watchers alike. With a significant acquisition on the horizon, the landscape of FARO Technologies is undergoing a dramatic shift. This analysis delves into the evolution of FARO's ownership, from its inception to its current state, and the implications of recent developments for FARO shareholders.

The impending acquisition of FARO Technologies by AMETEK marks a pivotal moment in the company's history. This transition from a publicly traded entity to a subsidiary will reshape the dynamics of FARO ownership and influence its future trajectory. This report will explore the key players, including the major institutional shareholders, and the strategic rationale behind this significant transaction, providing a comprehensive view of Who owns FARO.

The origins of FARO Technologies, a company specializing in 3D measurement and imaging solutions, trace back to 1981. It was co-founded by Simon Raab and Greg Frasier, both doctoral students in biomedical engineering at McGill University in Montreal, Canada. Initially known as Res-Tech, the company was later rebranded as FARO Technologies Inc. in 1983.

Simon Raab took on the role of chief executive officer, steering the company toward its initial vision of pioneering 3D measurement technologies. Their early focus was on developing precision technology applications. FARO's evolution reflects a strategic shift from medical applications to the manufacturing and industrial sectors.

The company's journey began with the introduction of its first product in 1984, an articulated-arm device designed for measuring knee laxity. This was followed by the launch of the Metrecom skeletal analysis system in 1986. A significant milestone occurred in 1992 when FARO reincorporated in Florida and relocated its operations from Quebec, Canada, to Lake Mary, Florida, marking a pivotal shift in its strategic direction.

FARO Ownership and Early Developments

While specific details about early equity splits are not readily available, the founders' drive led to significant technological advancements. FARO's development of Computer-Aided Manufacturing Measurement (CAM2) technology set a new standard, integrating metrology with CAD/CAM software. As of 2025, Simon Raab remained a significant shareholder.

• Simon Raab held 938,694 shares.
• This represented 4.88% of the company's shares.
• The value of his holdings was approximately $39.94 million.
• The company's focus shifted towards the manufacturing and industrial markets in 1992.

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The journey of FARO Technologies from its inception to its current ownership structure highlights significant shifts. The company went public in 1997, marking a pivotal moment that opened the door to a broader investor base. This initial public offering on NASDAQ under the symbol 'FARO' set the stage for the evolution of its shareholder composition.

Over the years, FARO's ownership has transformed, with institutional investors now holding the majority of shares. Strategic acquisitions, such as CATS Computer Aided Technologies GmbH in 1998, SpatialMetrix Corporation in 2002, and iQvolution AG in 2005, not only diversified its product offerings but also influenced the company's financial landscape, attracting a different class of investors.

As of June 11, 2025, the market capitalization of FARO stood at $818 million, with approximately 19.2 million shares outstanding. The transition to primarily institutional ownership reflects a broader trend in the tech sector, where institutional investors play a crucial role in shaping strategic decisions and corporate governance.

Key Institutional Stakeholders of FARO

Several institutional investors hold significant stakes in FARO, influencing its strategic direction. These major shareholders include prominent investment firms, demonstrating the confidence of large financial entities in the company's potential.

• The Vanguard Group, Inc., holding 2,578,386 shares.
• BlackRock Fund Advisors, holding 2,467,877 shares.
• T. Rowe Price Investment Management, Inc., holding 1,442,512 shares, representing 7.599% of shares.
• Invesco Capital Management LLC, holding 1,494,148 shares.
• Dimensional Fund Advisors LP, holding 1,348,768 shares.
• Royce & Associates LP, holding 1,053,329 shares, representing 5.549% of shares.
• Needham Investment Management LLC, holding 1,018,375 shares as of May 16, 2025.

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As of April 10, 2025, the Board of Directors at FARO Technologies, Inc. guides the company's strategic direction. The board operates with a staggered system, divided into three classes, each serving three-year terms. This structure means that the term of one class expires each year. Any vacancies on the board are filled by a majority vote from the current directors.

Shareholders of FARO common stock have the right to one vote per share, and the company's Articles of Incorporation do not allow for cumulative voting. Directors are elected based on a plurality of votes. As of March 21, 2025, shareholders of record were eligible to vote at the Annual Meeting held on May 21, 2025. The company also plans to release a definitive proxy statement for a special shareholder meeting related to the AMETEK acquisition, which will give details on those involved in soliciting proxies. Understanding Growth Strategy of FARO can provide additional insights into the company's direction.

The 2025 Annual Meeting of Shareholders saw the election of two directors, Moonhie Chin and Yuval Wasserman, each for a term expiring in 2028. Yuval Wasserman has served as Chairman of the Board since May 26, 2022. Specific representation of major shareholders by board members was not detailed in the provided information.

Key Takeaways on FARO Ownership

The Board of Directors at FARO Technologies oversees the company's strategy, with a staggered term system. Shareholders have one vote per share, with directors elected by a plurality.

• The board is divided into three classes with staggered terms.
• Shareholders vote on directors, with no cumulative voting.
• The Chairman of the Board is Yuval Wasserman.
• The Annual Meeting of Shareholders was held on May 21, 2025.

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The most significant recent development impacting the ownership profile of FARO Technologies is the definitive agreement for AMETEK, Inc. to acquire all outstanding shares of FARO Technologies common stock. The deal, valued at approximately $920 million, was approved by both companies' boards and is expected to close in the second half of 2025, pending regulatory approvals and shareholder approval. Upon closing, FARO will become a wholly-owned subsidiary of AMETEK, and shares will be delisted from the Nasdaq Global Select Market. This acquisition marks a significant shift in FARO ownership structure.

Leadership changes have also influenced the FARO company. Peter Lau was appointed President and CEO in 2023. Prior to that, Michael Burger held the position, being named president and CEO in 2019. Simon Raab, the co-founder, retired as President and CEO and a board member in January 2019. Jay Freeland also stepped down as President and CEO in 2015. These changes reflect the evolution of the company's leadership over time.

Institutional ownership of FARO Technologies has been substantial. As of Q4 2024, major institutional holders included BlackRock, Inc., Vanguard Group Inc, and T. Rowe Price Investment Management, Inc. Recent filings in May 2025 show adjustments in holdings, with some investors increasing and others decreasing their positions. For instance, Acadian Asset Management LLC increased its stake by 14.2%, while Goldman Sachs Group Inc. decreased its stake by 49.5%. This activity highlights the dynamic nature of FARO shareholders and the ongoing evaluation of the company's prospects. For more information, consider exploring the Competitors Landscape of FARO.

Who Owns FARO?

AMETEK, Inc. will own FARO after the acquisition. Currently, institutional investors hold a significant portion of the shares.

FARO Stock

FARO stock will be delisted from the Nasdaq upon the acquisition's completion, making the company private.

FARO Technologies Ownership

Institutional investors hold a substantial portion of FARO Technologies. The acquisition by AMETEK will change the ownership structure significantly.

FARO Company Acquisition

AMETEK's acquisition of FARO is expected to finalize in the second half of 2025, pending regulatory approvals.

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