Quarterly earnings of Zebra Technologies surpass predictions; heightens annual forecast; stocks climb in pre-market trading
Zebra Technologies Expands Market with $1.3 Billion Acquisition
Zebra Technologies Corporation has announced its decision to acquire Elo Touch Solutions, Inc. for around $1.3 billion, a move that is expected to significantly expand its addressable market by approximately $8 billion.
In a statement, Bill Burns, CEO of Zebra Technologies Corporation, said that the acquisition will broaden the company's focus beyond frontline workflows to include self-service and consumer-facing workflows, opening new growth avenues in retail, quick service restaurants, and healthcare automation.
For the third quarter, Zebra Technologies Corporation expects sales to grow in the range of 2% - 6%. The company also raised its full-year sales growth outlook to a range of 5%-7%, up from the previous 3%-7%.
In the second quarter, sales for Zebra Technologies Corporation grew 6.2% to $1.293 billion. However, the company reported a slight decrease in its second-quarter profit, with net income declining to $112 million or $21.9 per share. Excluding one-time items, profit of $186 million or $3.61 per share beat the analysts' average estimate.
Zebra Technologies Corporation's shares closed at $341.36 on Monday, up 1.83% for the day. Following the news of the acquisition, the company's shares were more than 6% up in pre-market.
The transaction is expected to close in 2025 pending regulatory approval, financed through Zebra’s cash reserves and credit facility. By integrating Elo’s interactive screen solutions with Zebra’s scan engines and automation portfolio, Zebra enhances its connected frontline vision, positioning itself as a leading provider of comprehensive end-to-end solutions for digitizing and automating business frontlines.
The acquisition is expected to be immediately accretive to Zebra’s earnings, projecting an additional $25 million in annual EBITDA by year three. Elo generates around $400 million in annual sales with steady growth (5%-7%).
The combined portfolio aims to deliver improved self-service and checkout experiences, tapping into trends like unified commerce and experience-led POS evolution, which are increasingly valued by shoppers and enterprises.
In the past year, Zebra Technologies Corporation's shares have traded in the range of $205.73 - $427.76.
[References] - pulse2.com, 2025-08-07 - kioskmarketplace.com, 2025-08-08 - nasdaq.com, 2025-08-05 - kirkland.com, 2025-08-05 - zebra.com, 2025-08-08
- The acquisition of Elo Touch Solutions by Zebra Technologies Corporation, worth approximately $1.3 billion, will not only expand their addressable market by around $8 billion but also broaden their focus to include self-service and consumer-facing workflows, primarily in retail, quick service restaurants, and healthcare automation, hence proving a significant growth opportunity in finance and technology sectors.
- With the integration of Elo’s interactive screen solutions and Zebra’s scan engines and automation portfolio, Zebra Technologies Corporation aims to enhance its connected frontline vision and position itself as a leading provider of comprehensive end-to-end solutions for digitizing and automating business frontlines, leveraging the ongoing trends in technology-driven business operations.
