- Agrees to acquire leading provider of RFID solutions to Original Equipment Manufacturers
- Significantly deepens Novanta's presence in a fast growing technology within the medical market
BEDFORD, Mass., Jan. 5, 2017 /PRNewswire/ -- Novanta Inc. (NASDAQ: NOVT) (the "Company", "we", "our", "Novanta"), a global leader and supplier of photonics, precision motion, and vision technologies to original equipment manufacturers in the medical and advanced industrial markets, announced today that it has reached an agreement to acquire the assets of ThingMagic, a division of Trimble (NASDAQ: TRMB), for $20 million in cash. The transaction, subject to customary closing conditions, is expected to close in the first quarter of 2017.
ThingMagic, based in Woburn, Massachusetts, provides Ultra High Frequency (UHF) RFID Reader Modules and Finished RFID Solutions to original equipment manufacturers (OEMs) in the medical and advanced industrial markets. ThingMagic's business operations and product offering will be combined with the Company's JADAK business.
"By combining the resources and RFID based technologies of JADAK and ThingMagic, Novanta will be uniquely positioned to be the leading provider of high performing RFID solutions for mission critical applications to original equipment manufacturers within the healthcare industry," said Matthijs Glastra, Chief Executive Officer of Novanta Inc. "ThingMagic broadens our portfolio of solutions in a high growth technology area, while giving us the resources to address the growing need for improvements in workflow solutions, patient safety, anti-counterfeiting, and asset tracking in a medical environment."
The transaction is expected to be immediately accretive to Novanta's operating cash flow and non-GAAP earnings per share on a full year pro forma basis. ThingMagic's actual revenue and earnings contribution to Novanta's 2017 financial results will depend on the ultimate date of the closing of the transaction, among other factors.
Headquartered in Syracuse, New York, JADAK is a market leading provider of embedded data collection and printing solutions for medical OEMs serving the healthcare and life science markets. JADAK has a wide array of data collection products and services, including machine vision, RFID, bar code scanning, and thermal printers that help customers solve unique inspection, tracking, scanning and documenting challenges. JADAK has established itself as a strategic partner for today's top healthcare companies through its flexible, customer centric approach and its wide range of capabilities.
ThingMagic, a division of Trimble, is a leading provider of UHF RFID reader engines, development platforms and design services for a wide range of applications. ThingMagic develops products for demanding high-volume applications and provides consulting and design services to create solutions for challenging applications. Located in Woburn, Massachusetts, the ThingMagic business was founded in 2000 by a group of visionary PhD graduates from Massachusetts Institute of Technology's Media Lab. For more information, visit: www.thingmagic.com.
Trimble is transforming the way the world works by delivering products and services that connect the physical and digital worlds. Core technologies in positioning, modeling, connectivity and data analytics enable customers to improve productivity, quality, safety and sustainability. From purpose built products to enterprise lifecycle solutions, Trimble software, hardware and services are transforming a broad range of industries such as agriculture, construction, geospatial and transportation and logistics. For more information about Trimble (NASDAQ: TRMB), visit: www.trimble.com.
Safe Harbor and Forward-Looking Information
Certain statements in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding operating or financial results, the success of our internal plans, the prospects for the acquisition of ThingMagic to contribute to our future growth and profit expectations. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as "expect," "intend," "anticipate," "estimate," "believe," "future," "could," "should," "plan," "aim," and other similar expressions. Such statements reflect the current beliefs of Company management and are not guarantees of future performance. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties include our ability to make and integrate our acquisitions and realize expected synergies. We also face other general risks, including our ability to realize cost savings from our operating initiatives; general economic conditions; unfavorable changes in foreign currency exchange rates; difficulties associated with exports; risks associated with our international operations; risks associated with newly acquired businesses; our significant dependence upon our customers' capital expenditures, which are subject to cyclical market fluctuations; increased warranty exposure; future competition; violations of our intellectual property rights and our ability to protect our intellectual property against infringement by third parties; our ability to attract and retain key personnel; disruptions in the supply of certain key materials or components; changes in the price for certain parts and components; changes in interest rates; changes in tax laws; credit ratings; risks in complying with local import and export regulations in the jurisdictions in which we operate; risks and cost associated with potential write-offs of our substantial intangible assets; and risks associated with maintaining regulatory compliance. Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company's operating results and financial condition are discussed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, our subsequent filings with the Securities and Exchange Commission ("SEC"), and in our future filings with the SEC. Such statements are based on the Company's beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this document except as required by law.
Novanta is a leading global supplier of core technology solutions that give advanced industrial and healthcare OEMs a competitive advantage. We combine deep expertise at the intersection of photonics and motion with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to our customers' demanding applications. We deliver highly engineered photonics, vision and precision motion solutions to customers around the world. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation and customer success. Novanta's common shares are quoted on NASDAQ under the ticker symbol "NOVT".
More information about Novanta is available on the Company's website at www.novanta.com. For additional information, please contact Novanta Inc. Investor Relations at (781) 266-5137 or InvestorRelations@Novanta.com.
Investor Relations Contact:
Robert J. Buckley
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SOURCE Novanta Inc.