Surgical Robotics Technology
Novanta, a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that it has reached an agreement to acquire privately held ATI Industrial Automation (“ATI”) for $172 million upfront in cash and additional contingent cash payments associated with 2021 financial performance. In addition, to further incentivize future financial performance, the Company will also grant performance stock units. The transaction is expected to close in the third quarter 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. ATI develops, manufactures, and sells products such as robotic changing systems, force/torque sensors, and collision sensors for industrial, collaborative, and medical robotic applications. These products enable OEMs and end-users to increase safety, versatility, and productivity of their robotic systems. Founded in 1989, the business has over 350 employees and is headquartered outside Raleigh, North Carolina.
“ATI is a fantastic business with proprietary intellectual property in attractive and growing markets. The business adds intelligent technology solutions and expands Novanta’s position in mission critical robotic applications, such as electric vehicle production, medical robotics, and collaborative robotics,” said Matthijs Glastra, CEO and Chairman of Novanta. “In addition, the transaction creates a nearly $250 million Precision Motion Segment with significant engineering competency to further accelerate our growth.”
“We are excited to join Novanta at this stage of our development. We expect the combination of competencies and cultures to create better opportunities for our customers and employees,” said Bob Little, Chief Executive Officer of ATI. “We feel confident our shared values, our passion for innovation, and our deep application knowledge will create stronger partnerships with our customers to help us accelerate our strategic goals.”
The transaction is subject to customary closing conditions, including regulatory approvals, and will be financed using available cash 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 on a full year basis. ATI’s expected 2021 revenue will be greater than $70 million on a full year basis. ATI’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.
