Novanta Inc. (NASDAQ: NOVT) (the "Company", "we", "our", "Novanta"), a
trusted technology partner to medical and advanced technology equipment
manufacturers, announced today the closing of its acquisition of World
of Medicine GmbH ("World of Medicine") for €115 million in cash.
World of Medicine, based in Berlin, Germany, is the leading supplier to
original equipment manufacturers ("OEMs") of regulatory controlled
medical insufflators, pumps, and related disposables for the minimally
invasive surgical market. The business operates as a full service
provider to OEMs by developing customized solutions for mission critical
applications, and by providing clinical validation, regulatory approval
support, training and product servicing.
The Company financed this acquisition with its amended and restated
credit facility. World of Medicine's revenue and profit contribution to
Novanta's second half and full year 2017 financial results will be
announced as part of Novanta's second quarter 2017 earnings release.
"We are very excited about the acquisition of World of Medicine, which
accelerates our strategy of increased presence in medical end markets.
This acquisition aligns well with our strategic priorities, and is
expected to create substantial and lasting value for Novanta,"
said Matthijs Glastra, Chief Executive Officer of Novanta Inc.
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, and the
expectations for the acquisition of World of Medicine to contribute to
our future revenue and profit, free cash flow and non-GAAP earnings per
share. 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; failure to comply 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, 2016, 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 applicable law.
About Novanta
Novanta is a leading global supplier of core technology solutions that
give healthcare and advanced industrial original equipment manufacturers
("OEMs") a competitive advantage. We combine a deep expertise of
photonics, vision, and motion technologies 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 [email protected].