- 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 /CNW/ -- 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.
About Trimble
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.
About Novanta
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.
Novanta Inc.
Investor Relations
Contact:
Robert J. Buckley
(781) 266-5137
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SOURCE Novanta Inc.