Novanta To Acquire ATI For $172M Cash Plus Earnout

Novanta Inc NOVT inked an agreement to acquire ATI Industrial Automation for $172 million upfront in cash and earnout consideration based on 2021 financial performance.
Additionally, Novanta will also grant performance stock units.
The transaction is likely to close in Q3 of 2021.
ATI is a leading supplier of intelligent end-of-arm technology solutions to original equipment manufacturers (OEMs) for advanced industrial and surgical robots.
The business adds intelligent technology solutions and expands Novanta's position in mission-critical robotic applications, like electric vehicle production, medical robotics, and collaborative robotics.
Additionally, it creates a nearly $250 million Precision Motion Segment with significant engineering competency.
The acquisition is likely to be accretive to Novanta's free cash flow and EPS on a full-year basis.
Novanta held $113.6 million in cash and equivalents as of Apr. 2.
Price action: NOVT shares closed at $132.84 on Friday.