Novanta Inc. (NASDAQ: NOVT), 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.
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.
