WATERLOO - The acquisition of drone maker Aeryon Labs presents significant opportunities for both the company and Waterloo Region, its co-founder believes.

On Monday, Oregon-based Flir Systems Inc. announced the acquisition of Waterloo's Aeryon Labs for US$200 million ($265 million Cdn).

"We expect Flir to be investing here," Aeryon's co-founder and chief technology officer Dave Kroetsch said. "It also starts the virtuous circle of reinvesting in the community," with the prospect of new startups and ventures springing up to support the growing unmanned aerial systems sector.

Founded in 2007, Aeryon makes drone systems for international clients in the military, public safety and critical infrastructure markets. The company currently employs about 220 people, with offices or staff in Waterloo, the United States and overseas.

"What we bring to the table as a world-class manufacturer of these small drones is a key piece of what Flir sees as a move to broader solutions as their company evolves," Kroetsch said.

Flir takes its name from the acronym for forward-looking infrared, a camera technology typically used on military and civilian aircraft. The company designs and makes sensor systems for the government and defence, industrial, and commercial markets.

"Aeryon brings to the table the ability to fly those sensors," Kroetsch said.

In 2016, Flir made a move into the sector with the purchase of Prox Dynamics AS, a Norwegian firm specializing in nano-class unmanned aerial systems; its Black Hornet Nano helicopter weighs just over half an ounce.

Aeryon has used Flir sensors in its drones for about eight years, Kroetsch said. "We've had a developing relationship."

Flir's global market reach means Aeryon can be introduced to regions it's not currently familiar with. The deal also marries work the two firms are doing in such areas as automation and artificial intelligence, seen as the next trends in the developing market, Kroetsch said.

"Our product road maps dovetail in a lot of very natural ways," he said.

Aeryon Labs is now part of the Flir Government and Defense Business Unit's Unmanned Systems and Integrated Solutions division.

Aeryon equipment is already in use by 20 militaries, including the U.S. Department of Defense; other applications include search and rescue, disaster response, collision reconstruction, and infrastructure inspection.

"The acquisition of Aeryon Labs reinforces our long-term strategy to move beyond providing sensors to the development of complete solutions that save lives and livelihoods," Flir president and chief executive officer Jim Cannon said in a news release.

"It's great to see that Canadian technology and know-how is being recognized," said Mark Aruja, chair of Unmanned Systems Canada, a national industry association representing stakeholders in business, academia and government.

But such a deal underscores the challenge of attracting domestic investment capital into the sector, he added.

That said, unmanned systems have international appeal and Flir has that global reach. "There's a real potential upside to this," he said.

Aruja said we're on the cusp of technological developments that will allow unmanned aerial vehicles to undertake a multitude of tasks at great economic value. "I think the future is significant."

Kroetsch acknowledged there may be a "negative stigma" associated with the sale of a Canadian company to an American firm. "In my mind, it's actually a very good thing," he said.

Being part of a larger company provides more stability for Aeryon employees, Kroetsch said, and paves the way for local investment and anticipated growth. Having Canada as the country of origin can also help when the drones are sold internationally.

Like Aruja, Kroetsch believes the industry is on the verge of major change. "The market is really starting to take shape. It's not as nebulous as it once was," he said.

"It's really, in many ways, just beginning, and the best is yet to come for this technology."

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Twitter: @DavisRecord