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.
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