Novanta Inc. (Nasdaq: NOVT) (“Novanta” or the “Company”), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that it has reached an agreement to acquire Schneider Electric Motion USA (“SEM,” “IMS,” or “Intelligent Motion Systems”) for $115 million in cash. The transaction is expected to close in the third quarter of 2021.
Schneider Electric Motion USA is a manufacturer of motion control components for automation equipment. The company is a leader in innovative motion control solutions, specifically around brushless motor technology, integrated motor drives and electronic controls. Founded in 1986 as Intelligent Motion Systems (IMS), the business develops key solutions for applications demanding highly precise, controlled movement in areas including medical instruments, lab automation, robotics, and other advanced manufacturing applications. The business has approximately 60 employees and is headquartered in Marlborough, Connecticut.
“SEM is expected to help our expansion into automation and robotic applications through advanced motion control solutions. The business is also anticipated to increase Novanta’s exposure to the Life Sciences and Medical end markets while broadening our access to sophisticated automation integrators,” said Matthijs Glastra, Chief Executive Officer and Chairperson of Novanta. “The addition of SEM’s technology would expand our precision motion control portfolio, furthering our ability to serve customers with unique, high performance solutions.”
The transaction is subject to customary closing conditions, including regulatory approvals, and will be financed using available cash on hand and the Company’s revolving credit facility. The acquisition is expected to be accretive to Novanta’s free cash flow and non-GAAP earnings per share. SEM’s actual revenue and profit contribution to Novanta’s 2021 financial results will depend on the ultimate date of the closing of the transaction, among other factors.
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