Vontier To Acquire DRB Systems For $965M, Raises Q2 Earnings Outlook

Vontier Corp VNT inked an agreement to acquire DRB Systems, LLC from New Mountain Capital LLC affiliates for $965 million in cash.
DRB is a provider of point of sale, workflow software, and control solutions to the car wash industry. The acquisition will close in Q3 of 2021.
The acquisition is likely to accelerate Vontier's portfolio diversification strategy toward long-term secular growth drivers in attractive markets and establish a $500 million Retail Solutions portfolio.
The entry into the high-value segment of the car wash industry will help Vontier benefit from the growing demand for clean, efficient mobility solutions, autonomous vehicles, and water conservation.
Vontier Q2 2021 core revenue growth and adjusted EPS guidance are likely to surpass its previously announced guidance, driven primarily by increased demand for Retail Solutions and Auto Repair offerings.
The adjusted EPS guidance was $0.50 - $0.54 versus the analyst consensus of $0.53.
Vontier held $670.3 million in cash and equivalents as of Apr. 2.
Price action: VNT shares traded lower by 1.12% at $30.79 on the last check Monday.