Zebra Technologies has entered into a definitive agreement to acquire Elo Touch Solutions for $1.3 billion in cash. Elo is a leading provider of solutions for customer engagement, self-service, and automation in retail, hospitality, and healthcare markets.
The acquisition will combine Zebra’s expertise in frontline workflows with Elo’s consumer-facing kiosks, payment solutions, and touchscreen technology. Zebra CEO Bill Burns noted that this move is part of the company’s strategy to accelerate the connected frontline and it would expand its addressable market by an estimated $8 billion.
The deal is expected to close in 2025, subject to regulatory approval. It will be funded with a combination of cash on hand and financing from Zebra’s credit facility. Elo has approximately $400 million in annual sales, and the acquisition is projected to be immediately accretive to earnings upon closing.
Advisors: Morgan Stanley is serving as financial advisor and Kirkland & Ellis as legal counsel to Zebra. Moelis & Company is serving as financial advisor and Gibson, Dunn & Crutcher as legal counsel to Elo. Crestview Partners has been a majority investor in Elo since 2018.
KEY QUOTES:
“This acquisition represents the next step in our journey to accelerate the connected frontline, which is a key tenet of our growth strategy. An increased focus on self-service and consumer-facing workflows will expand our addressable market by approximately $8 billion and create a leading portfolio of solutions that digitize and automate the frontline of business. We look forward to welcoming the Elo team to Zebra and pursuing new growth opportunities together following the closing of the acquisition.”
Bill Burns, Chief Executive Officer, Zebra Technologies
“Combining Zebra’s market-leading mobility, visibility, and automation solutions with our expertise in consumer-facing workflows will add significant value to our customers and partners. We are excited about the opportunity to join Zebra and contribute to its growth strategy.”
Craig Witsoe, Chief Executive Officer, Elo
