Under a merger agreement, Flir Systems Inc. of Portland, Ore., will acquire Indigo Systems Corp. of Goleta, Calif., thereby securing a supply of low-cost, high-quality IR detectors, as well as Indigo's intellectual property and design capabilities.

Flir Systems' sales and marketing and systems integration capabilities combined with Indigo's strengths in component design and manufacturing are expected to result in more cost-effective and higher-performing infrared systems for customers. It is anticipated that the transaction, valued at approximately $190 million, will close early next year.

Indigo has expanded its headquarters to a larger facility in the same business park in Goleta. The sublease for the 86,246-sq-ft office space runs through April 30, 2010. It combines with the company's two other detector operations and manufacturing plants in the area to house 210 employees.