LINCOLNSHIRE, Ill. & BRATISLAVA, Slovakia - Zebra Technologies (NASDAQ: ZBRA), a global player in digital solutions that connect data, assets, and people, announced its plan to acquire Photoneo, a top developer of 3D machine vision technology. This move aims to strengthen Zebra’s presence in the rapidly growing 3D segment of the Machine Vision market.
The integration of Photoneo’s 3D vision with Zebra’s advanced sensors and AI capabilities is expected to yield a comprehensive suite of solutions, addressing complex use cases in automotive manufacturing, logistics, and other sectors. Photoneo is noted for its parallel structured light technology, which enhances the speed, accuracy, and robustness of vision-guided robotic applications.
Bill Burns, CEO of Zebra Technologies, emphasized that the acquisition will cater to the global demand for advanced machine vision in frontline operations, expanding Zebra’s portfolio of 3D sensors and machine vision software. The anticipated addition of Photoneo’s team is seen as a significant step for Zebra’s innovation trajectory.
Photoneo has previously partnered with Zebra as an OEM for its 3D cameras, bolstering Zebra’s product offerings. Jan Zizka, Co-founder and CEO of Photoneo, expressed confidence that the acquisition by Zebra will create an environment conducive to innovation and customer value across new machine vision applications.
Zebra, which has previously acquired Matrox Imaging to enhance its machine vision hardware and software, expects to fund the acquisition with cash on hand. The company maintains a moderate debt level with a debt-to-equity ratio of 0.69, as reported by InvestingPro. The transaction, subject to customary closing conditions, is slated for completion in the first quarter of 2025. While specific financial details have not been disclosed, investors should note that Zebra’s current market valuation suggests it may be trading above its Fair Value based on comprehensive analysis available through InvestingPro’s exclusive research reports.
The acquisition is seen as accretive to Zebra’s growth and profitability, indicating a strategic expansion in its machine vision solutions portfolio. Legal counsel for the transaction is provided by A&O Shearman LLP for Zebra and Dentons for Photoneo, with Evercore Partners (NYSE:EVR) International serving as Photoneo’s financial advisor.
This press release statement is based on forward-looking statements subject to risks and uncertainties that could affect Zebra’s operations and results. The company does not assume any obligation to update these statements beyond the legal requirements.
In other recent news, Zebra Technologies has been the subject of attention following several notable developments. Morgan Stanley (NYSE:MS) recently upgraded Zebra Technologies’ stock rating from Underweight to Equalweight, attributing this change to the company’s recovery in retail and distribution capital expenditure. The firm’s analysts believe that Zebra Technologies has moved past significant headwinds, including challenges related to e-commerce recovery, and now possesses a more balanced near-term risk-reward outlook.
In addition to the upgrade, Zebra Technologies reported a substantial increase in Q3 sales and earnings. The company announced Q3 sales of nearly $1.3 billion, a 31% increase, and non-GAAP diluted earnings per share of $3.49, marking a 300% rise from the previous year. This growth was driven by strong performances across all primary end markets, including mobile computing, data capture, and printing.
Zebra Technologies also raised its full-year outlook, expecting continued growth in sales and adjusted EBITDA margins. Despite some uncertainties, such as a projected decline in Q4 gross margin and limited visibility for large projects in 2025, the company remains optimistic about its future. Notably, Zebra’s strategic initiatives, including the acquisition of Matrox and the development of AI-enabled enterprise mobile computers, underscore the company’s robust approach to navigating the market landscape. These recent developments reflect Zebra Technologies’ ongoing commitment to growth and innovation.
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