- Novanta acquires leading provider of embedded touch screen technology solutions serving OEM equipment suppliers across the medical and advanced industrial markets
Novanta Inc. (NASDAQ: NOVT) (the "Company", "we", "our", or "Novanta"),
a global leader and supplier of laser, precision motion, and vision
technologies to original equipment manufacturers in the medical and
advanced industrial markets, today announced that it has reached an
agreement to acquire Reach Technology, a Fremont, California-based
provider of embedded touch screen technology solutions for Original
Equipment Manufacturers ("OEMs") in the medical and advanced industrial
markets. The transaction is expected to close later this month.
Reach Technology specializes in embedded display panel technologies that
deliver high-performance touch screen solutions for OEMs with a focus on
medical applications. The business will be combined into Novanta's NDS
Surgical Imaging business, which is located in San Jose, California.
Reach Technology's family of high performance embedded touch screen
technology will complement NDS's broad portfolio of medical grade
displays.
"The combination of Reach Technology with NDS Surgical Imaging expands
the range of medical display solutions to enhance our value proposition
with medical OEM customers. We expect the combination of their customer
breadth, technology leadership, and supply chain management will further
increase our opportunities with leading medical OEM customers,"
said John Roush, Chief Executive Officer of Novanta.
"As a leader in high quality visualization solutions, offering the
broadest portfolio of medical grade displays, the acquisition of Reach
expands our addressable market by offering more application solutions to
our customers," added Karim Khadr, President of NDS Surgical Imaging.
"We are excited to have Reach Technology employees as part of our team,
to further strengthen our engineering expertise in critical and
demanding healthcare applications."
NDS Surgical Imaging is a leader in integrated Operating Room
technologies for more than 20 years and provides clinical and technical
expertise to OEM partners to deliver high performance visualization,
image processing and wireless solutions to the healthcare market.
Reach Technology has been developing and manufacturing embedded touch
screen solutions for more than 20 years and offers world class customer
service and support to its customers. Reach Technology's products can be
found across medical and advanced industrial applications.
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 laser, 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".
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. 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. These forward-looking statements include, but are not
limited to, statements regarding our ability to generate profitable
growth; the acquisition of Reach Technology enhancing our value
proposition with medical OEM customers, increasing our opportunities
with leading medical OEM customers and expanding our addressable market;
and other statements that are not historical facts.
These forward-looking statements are neither promises nor guarantees,
but involve risks and uncertainties that may cause actual results to
differ materially from those contained in the forward-looking
statements. Our actual results could differ materially from those
anticipated in these forward-looking statements for many reasons,
including, but not limited to, the following: economic and political
conditions and the effects of these conditions on our customers'
businesses and level of business activity; our significant dependence
upon our customers' capital expenditures, which are subject to cyclical
market fluctuations; our dependence upon our ability to respond to
fluctuations in product demand; our ability to continually innovate and
successfully commercialize our innovations; failure to introduce new
products in a timely manner; customer order timing and other similar
factors beyond our control; disruptions or breaches in security of our
information technology systems; changes in interest rates, credit
ratings or foreign currency exchange rates; risk associated with our
operations in foreign countries; our increased use of outsourcing in
foreign countries; our failure to comply with local import and export
regulations in the jurisdictions in which we operate; our reliance on
third party distribution channels; violations of our intellectual
property rights and our ability to protect our intellectual property
against infringement by third parties; risk of losing our competitive
advantage; our failure to successfully integrate recent and future
acquisitions into our business; our ability to make divestitures that
provide business benefits; our ability to attract and retain key
personnel; our restructuring and realignment activities and disruptions
to our operations as a result of consolidation of our operations;
product defects or problems integrating our products with other vendors'
products; disruptions in the supply of certain key components or other
goods from our suppliers; production difficulties and product delivery
delays or disruptions; our compliance, or our failure to comply, with
various federal, state and foreign regulations; changes in governmental
regulation of our business or products; effects of conflict minerals
regulations; our failure to comply with environmental regulations; our
failure to implement new information technology systems and software
successfully; our failure to realize the full value of our intangible
assets;our exposure to the credit risk of some of our customers and in
weakened markets; changes in tax laws, and fluctuations in our effective
tax rates; being subject to U.S. federal income taxation even though we
are a non-U.S. corporation; any need for additional capital to
adequately respond to business challenges or opportunities and repay or
refinance our existing indebtedness, which may not be available on
acceptable terms or at all; volatility in the market price for our
common shares; our ability to access cash and other assets of our
subsidiaries; the influence over our business of certain significant
shareholders; provisions of our articles of incorporation may delay or
prevent a change in control; our significant existing indebtedness may
limit our ability to engage in certain activities; and our failure to
maintain appropriate internal controls in the future.
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.
Forward-looking 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.
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.