Acquisition is expected to be immediately accretive to earnings once closed
Zebra Technologies Corporation has entered into a definitive agreement to acquire Elo Touch Solutions, Inc., a company that designs and manufactures touchscreen technologies, including monitors, interactive digital signage, and all-in-one computers that enhance self-service, and provide automation across retail, hospitality, quick service restaurants (QSR), healthcare, and industrial markets.
The acquistion has been reported to cost $1.3 billion, and will strengthen Zebra’s offerings in self-service use cases and complement its recently launched kiosk solution.
With complementary portfolios and similar go-to-market strategies Zebra and Elo will deliver a comprehensive portfolio for its customers, and in close partnership with leading Independent Software Vendors (ISVs), payment solutions providers (PSPs), value-added resellers (VARs) and distributors.
Expanding Portfolio to Accelerate the Connected Frontline Across Industries
Zebra’s portfolio for frontline workers will be augmented by Elo’s suite of consumer-facing kiosks, edge computing, payment and touchscreen solutions to deliver a more comprehensive frontline experience.
“This acquisition represents the next step in our journey to accelerate the connected frontline, which is a key tenet of our growth strategy,” said Bill Burns, Chief Executive Officer, Zebra Technologies. “An increased focus on self-service and consumer-facing workflows will expand our addressable market by approximately $8 billion and create a leading portfolio of solutions that digitize and automate the frontline of business. We look forward to welcoming the Elo team to Zebra and pursuing new growth opportunities together following the closing of the acquisition.”
Elo offers a wide range of industry-tailored solutions which modernise point-of-sale (POS), streamline self-service and payment experiences, automate kitchen and industrial workflows, and optimise production and process management.
The planned addition of Elo’s portfolio will give Zebra customers and partners more choice and, over time, a more holistic approach to address their emerging use cases. The continued growth of retail media networks and the deployment of new AI-based agents on the frontline are areas where the combined portfolios of Zebra and Elo can deliver solutions.
According to Zebra’s 17th Annual Global Shopper Study, 78% of shoppers said self-checkout options improve their shopping experience. In addition, leading analysts have noted that traditional POS technologies are advancing beyond store-only transactional services to enable an experience-led unified commerce strategy powered by new data streams. Zebra and Elo are well positioned to play an increasingly important role in the transformation of POS and self-checkout moving forward.
“Combining Zebra’s market-leading mobility, visibility, and automation solutions with our expertise in consumer-facing workflows will add significant value to our customers and partners,” said Craig Witsoe, Chief Executive Officer, Elo. “We are excited about the opportunity to join Zebra and contribute to its growth strategy.”
Transaction Details
Zebra expects to fund the $1.3 billion purchase price with a combination of cash on hand along with financing from its credit facility. The purchase price is subject to customary closing adjustments and transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in 2025.
Elo has annual sales of approximately $400 million with similar annual sales growth (5-7% over a cycle) and EBITDA margin profile as Zebra. The transaction is expected to be immediately accretive to earnings upon closing and generate an incremental US$25 million of annual EBITDA through synergies by year three.
This article contains forward-looking statements, expressing expectations, beliefs, or strategies about the future, and caution should be exercised in the event that they may, or may not, occur.
