One of Waterloo Region's largest technology companies has been sold to a subsidiary of U.S.-based Teledyne Technologies.

All of DALSA's common shares are being sold for $18.25 per share in cash, for a total cost of $341 million.

Principal operations for the company are expected to remain in their current location, with the existing management, executives and employees.

DALSA is a leader in high performance digital imaging and microelectromechanical systems. It began as a spin-off of the University of Waterloo in 1980.

Currently, DALSA employs about 1,000 people worldwide. It boasted sales of $201 million for the fiscal year ending Sept. 20, 2010.

In a press release, Dr. Robert Mehrabian, chairman, president and CEO of Teledyne says he believes the strengths of each company's technology will lead to the development of new products.

He adds, "Teledyne and DALSA are each acknowledged leaders in digital imaging technology but our product lines and customer bases are almost entirely complementary."

Dr. Savvas Chamberlain, chairman and founder of DALSA said in a press release that this is a natural direction for the company and will be good for "shareholders, employees, executives, local communities, customers and vendors."

DALSA shareholders representing two-thirds of common shares must still approve the deal and regulatory approval is also needed.