Cognex Signs Its Largest Ever Acquisition Deal: What's In Store?

Cognex Corp CGNX inked an agreement to acquire Moritex Corporation from Trustar Capital for ¥40 billion (around $275 million) in an all-cash deal.

Moritex is a global provider of optics components with a strong foothold in Japan. It employs approximately 500 people.

The buyout signifies CGNX's largest acquisition in its 42-year history.

The deal is expected to contribute 6%-8% of CGNX revenue and accretive to GAAP EPS in 2025.

The transaction is projected to close by the end of 2023 upon meeting customary closing conditions. 

Robert Willett, President and CEO of Cognex said, "We often note that machine vision functions like the eye and brain of a human: Cognex vision systems are akin to the brain, and Moritex optics, the eye. Bringing these complementary technologies together will streamline the solution we provide our customers, enabling a more advanced and integrated offering. Expanding into the optics components segment with this acquisition will increase our served market and deepen our penetration of the Japanese machine vision market."

As of July 2, 2023, CGNX's financial position continued to be strong, with $832 million in cash and investments and no debt.

Price Action: CGNX shares closed higher by 0.84% at $47.84 on Tuesday.