For 1.3 Billion Dollars: Zebra Acquires Elo Touch

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.

Expansion of the target market

“This acquisition represents the next step in our journey to accelerate the connected frontline, which is a key tenet of our growth strategy,” said Bill Burns, Chief Executive Officer, Zebra Technologies. “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.”

“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,” said Craig Witsoe, Chief Executive Officer, Elo. “We are excited about the opportunity to join Zebra and contribute to its growth strategy.”

Transaction expected to close in 2025

Zebra plans to fund the purchase price of $1.3 billion with a combination of cash and financing from its credit facility. 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.