- 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
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.