Retail technology company Zebra Technologies is acquiring interactive screen provider Elo Touch Solutions for $1.3 billion. A definitive agreement for the acquisition has been signed.
With complementary products and similar market launch strategies, Zebra and Elo intend to jointly offer a comprehensive portfolio for modern retail and other touch applications in the future.
Zebra CEO Bill Burns pointed out that the company would be able to expand its addressable market by approximately $8 billion and “create a leading portfolio of solutions that digitize and automate the frontline of business”.
As always, the transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in 2025. Elo’s previous majority investor is Crestview Partners.
Elo generates annual sales of approximately $400 million. According to Zebra, both companies have similar annual revenue growth and Ebitda margin profiles. The transaction is expected to immediately increase earnings upon closing. According to Zebra, synergies will generate an additional $25 million in annual Ebitda by the third year.
Neither company has digital signage as their core business. But there could be synergies for self-check-outs and retail kiosk systems that could impact the digital retail space. According to the specialists at kioskindustry.org, grocery stores could benefit from thuis acquisition, “combining Elo’s user-friendly touchscreens and kiosks with Zebra’s robust peripherals”.