Latest news with #digitizing
Yahoo
4 days ago
- Business
- Yahoo
Global Medical Technology Leader Selects Kneat
LIMERICK, Ireland, Aug. 07, 2025 (GLOBE NEWSWIRE) -- inc. (TSX: KSI) (OTCQC: KSIOF), a leader in digitizing and automating validation and quality processes, is pleased to announce that a global medical technology company ('the Company') has signed a three-year Master Services Agreement with Kneat. The Company is a division of a larger manufacturer, headquartered in Asia, that employs over 30,000 people and provides specialty technologies and medical devices in more than 160 countries worldwide. This Company will use the Kneat Gx platform initially for equipment validation. 'This new signing again underscores the confidence in Kneat within the life sciences sector,' said Eddie Ryan, Kneat CEO. 'Our software platform continues to advance with growing functionality and is designed to deliver incremental value and benefits in the years to come.' Adoption of Kneat by the world's largest life sciences companies, and the large-scale, multi-site deployments within them, highlight Kneat's technical fit for the breadth of validation use cases and the strategic trust that the most demanding customers place in Kneat's platform. About Kneat Kneat Solutions provides leading companies in highly regulated industries with unparalleled efficiency in validation and compliance through its digital validation platform Kneat Gx. As an industry leader in customer satisfaction, Kneat boasts an excellent record for implementation, powered by our user-friendly design, expert support, and on-demand training academy. Kneat Gx is an industry-leading digital validation platform that enables highly regulated companies to manage any validation discipline from end-to-end. Kneat Gx is fully ISO 9001 and ISO 27001 certified, fully validated, and 21 CFR Part 11/Annex 11 compliant. Multiple independent customer studies show up to 40% reduction in documentation cycle times, up to 20% faster speed to market, and a higher compliance standard. Cautionary and Forward-Looking Statements Except for the statements of historical fact contained herein, certain information presented constitutes 'forward-looking information' within the meaning of applicable Canadian securities laws. Such forward-looking information includes, but is not limited to, the relationship between Kneat and the customer, Kneat's business development activities, the use and implementation timelines of Kneat's software within the customer's validation processes, the ability and intent of the customer to scale the use of Kneat's software within the customer's organization, and the compliance of Kneat's platform under regulatory audit and inspection. While such forward-looking statements are expressed by Kneat, as stated in this release, in good faith and believed by Kneat to have a reasonable basis, they are subject to important risks and uncertainties. As a result of these risks and uncertainties, the events predicted in these forward-looking statements may differ materially from actual results or events. These forward-looking statements are not guarantees of future performance, given that they involve risks and uncertainties. Kneat does not undertake any obligation to release publicly revisions to any forward-looking statement, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at an investor's own risk. For more information visit For further information: Katie Keita, Kneat Investor RelationsP: + 1 902-450-2660 E: investors@
Forbes
5 days ago
- Business
- Forbes
What CISOs Need To Know About Identity Governance Across OT And IT
Peter Hill is the chief executive officer of Gathid. As the boundaries between operational technology (OT) and information technology (IT) dissolve, identity is becoming the connective tissue and the point of greatest vulnerability. Industrial and critical infrastructure organizations are digitizing rapidly. From connected sensors to hybrid cloud platforms, the convergence of OT and IT brings undeniable operational advantages. But for security leaders, it introduces a complex, fragmented identity landscape that's difficult to see, govern and secure. For today's CISOs, the question is no longer whether OT and IT should be integrated. It's how to manage access and enforce identity governance in environments that were never designed to work together. The Identity Challenge At The Heart Of OT/IT Convergence Traditional identity and access management (IAM) systems were built for IT. They often assume cloud-ready environments, API access and a single source of truth. OT, on the other hand, remains a world of legacy systems, air-gapped networks, vendor-owned software and local admin accounts. This disjointed architecture leads to significant governance challenges: • No unified visibility across all identities (human and machine) • Dormant or orphaned accounts in OT systems remain active • Excessive privileges and toxic role combinations go unnoticed • Manual access reviews are unreliable and out of date by the time they're completed • Audits become operational burdens due to a lack of centralized evidence For CISOs, this identity debt is not theoretical. It's a real risk: operational, reputational and regulatory. Why The Old Playbook Doesn't Work Many organizations attempt to extend their IT IAM tools into OT. However, these platforms often require full integrations, modern protocols and constant connectivity—things OT environments can't always provide. And even when integration is possible, it's invasive. Retrofitting centralized IAM into OT networks may require architecture changes, incur downtime or expose systems to unnecessary risk. Security leaders don't just need to control access. They need to fully understand it, continuously and contextually, without adding complexity or breaking mission-critical operations. A Strategic Solution: Digital Twins Plus Knowledge Graphs To bridge the identity governance gap, CISOs are turning to more adaptive, data-driven models, specifically digital twins and knowledge graphs. A digital twin creates a virtual representation of your identity ecosystem, spanning both OT and IT systems. It maps every user, account, permission and role, providing a dynamic view of who has access to what and why. Unlike traditional IAM, this model doesn't require bidirectional integration. It works with disconnected or air-gapped systems, making it especially suited to high-security OT environments. Benefits for CISOs: • See the full access landscape across all domains. • Monitor changes as they happen. • Continuously validate least privilege and policy compliance. • Gain board-level visibility into identity-related risk. Where digital twins give you the map, knowledge graphs show the structure. They model the relationships between people, systems, roles and policies, revealing patterns, risks and dependencies. With knowledge graphs, CISOs can: • Identify cross-system privilege creep. • Detect conflicting roles before they become vulnerabilities. • Tie service accounts back to owners and justify permissions. • Analyze the downstream impact of access changes. Together, digital twins and knowledge graphs form a risk intelligence layer for identity, delivering insights that most IAM tools miss. What CISOs Should Do Next: Five Strategic Steps To mature identity and access governance across converged OT and IT environments, CISOs should prioritize these actions: 1. Inventory the full identity landscape. Start with a complete audit of all identities: employees, contractors, third parties, service accounts and machine users. Map where access is granted and how it's governed, especially in non-centralized OT systems. 2. Build a unified identity model. Leverage digital twin technology to consolidate and continuously update your access map. This creates the foundation for scalable governance and auditability. 3. Uncover hidden risk through relationships. Use knowledge graphs to reveal toxic access paths, role conflicts and overprovisioned accounts. Context is key. Understanding how access is used and why is as important as knowing it exists. 4. Automate reviews and compliance checks. Manual reviews are slow, expensive and outdated before they're completed. Shift to ongoing validation of access rights and policy adherence. Make audits self-serve and always-on. 5. Enforce least privilege with confidence. Privilege management only works when it's grounded in accurate, current data. Use identity modeling and graph-based insights to enforce role-based access and eliminate unnecessary privileges, especially for sensitive OT systems. Why This Matters: Identity As A Modern Threat Vector Attackers no longer break in. They log in. Whether it's compromised credentials, privilege escalation or insider misuse, identity is now the attack surface of choice. And in OT/IT converged environments, the stakes are even higher. A breach in a misconfigured identity could mean more than just data loss. It could halt production, disrupt energy grids or impact public safety. For CISOs, this is not just a technology challenge; it's a boardroom imperative. Visibility, control and auditability of access across all environments must be provable, scalable and immediate. Identity Governance Without Borders The convergence of OT and IT is inevitable. Yet fragmented identity governance doesn't have to be. By embracing modern modeling technologies—digital twins for continuous visibility and knowledge graphs for contextual intelligence—CISOs can gain the insight and oversight they need. This isn't about replacing existing tools. It's about complementing them with intelligence that closes gaps, reduces risk and transforms compliance from a burden into a strength. In a world where identity is the new perimeter, understanding access is not optional. It's foundational. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Globe and Mail
5 days ago
- Business
- Globe and Mail
Kneat Announces Record Revenue for Second Quarter 2025
LIMERICK, Ireland, Aug. 05, 2025 (GLOBE NEWSWIRE) -- inc. (TSX: KSI) (OTC: KSIOF) ('Kneat' or the 'Company') a leader in digitizing and automating validation and quality processes, today announced financial results for the three-month period ended June 30, 2025. All dollar amounts are presented in Canadian dollars unless otherwise stated. Second-quarter 2025 total revenue reaches $15.4 million, an increase of 32% year over year Gross margin for the quarter ended June 30, 2025 reaches 75% Annual Recurring Revenue (ARR) 1 at June 30, 2025, grows 43% year over year to $64.8 million. 'We continue on our trajectory towards profitability. New customer wins in the past quarter reached new highs, proving Kneat Gx is the platform of choice. We welcomed new leadership in finance, product and engineering and continued the unrelenting development of our platform.' - Eddie Ryan, Chief Executive Officer of Kneat. Q2 2025 Highlights Total revenues increased 32% to $15.4 million in the second quarter of 2025, compared to $11.7 million for the second quarter of 2024. SaaS revenue for the second quarter of 2025 grew 31% to $14.1 million, versus $10.8 million for the second quarter of 2024. Second-quarter 2025 gross profit was $11.6 million, up 34% from $8.7 million in gross profit for the second quarter of 2024. Gross margin in the second quarter of 2025 was 75%, compared to 74% for the second quarter of 2024. EBITDA 1 in the second quarter of 2025 was $3.8 million, compared with $0.5 million for the second quarter of 2024. Adjusted EBITDA 1 in the second quarter of 2025 was $0.4 million, compared with $1.6 million for the second quarter of 2024. Net loss for the second quarter of 2025 was $0.4 million, compared with a net loss of $3.1 million for the second quarter of 2024. Total ARR 1, which includes SaaS license and recurring maintenance fees, was $64.8 million at June 30, 2025, an increase of 43% from $45.4 million at June 30, 2024. [1] ARR is a supplementary measure. EBITDA and Adjusted EBITDA are non-IFRS measures and are not recognized, defined or standardized measures under IFRS. These measures are defined in the 'Supplementary and Non-IFRS Measures' section of this news release. First Half of 2025 Financial Highlights Total revenues for the six-month period ended June 30, 2025 increased 34% to $30.2 million, compared to $22.4 million for the comparable six-month period in 2024. SaaS revenue grew 36% to $28.0 million for the six months ended June 30, 2025, versus $20.6 million for the comparable period in 2024. Gross profit was $22.6 million, up 36% from $16.6 million in gross profit for the first half of 2024. Gross margin for the first half of 2025 was 75%, compared to 74% for the first half of 2024. EBITDA 1 for the first half of 2025 was $9.7 million, compared with $0.0 million for the first half of 2024. Adjusted EBITDA 1 for the first half of 2025 was $2.7 million, compared with $2.2 million for the first half of 2024. Net income for the first half of 2025 was $1.8 million, compared with ($6.4) million for the first half of 2024. Recent Business Highlights In April 2025, Kneat announced that it signed a Services Agreement with a multinational producer of generic pharmaceuticals. The Company, which operates more than a dozen manufacturing facilities around the world and employs more than 20,000 people, will initially use Kneat to digitize its drawing management process. In early May 2025, Kneat saw record attendance at VALIDATE, its annual event convening validation and quality professionals from around the world. One of the world's largest events for validation experts to discover, share and apply validation technologies, regulations, and best practices, VALIDATE enabled participants to witness the power of the Kneat Gx platform. In May 2025, Kneat announced that it signed a three-year Master Services Agreement with a leading manufacturer of clinical diagnostics for the healthcare industry. The Company, which operates in more than 40 countries and employs over 14,000 people, will use Kneat Gx initially to digitize its equipment validation process. Also in May 2025, Kneat announced the expansion of its executive leadership team with the addition of a Chief Innovation Officer Role. Co-founder and Chief Product Officer Kevin Fitzgerald transitioned out of his current role and into the Chief Innovation Officer role on June 9th. Donal O'Sullivan, an executive with extensive software development and product management leadership, joined Kneat at that time as Chief Product Officer. In June 2025, Kneat announced that it signed a multi-year Master Services Agreement with a leading global healthcare technology company. The Company, which employs over 50,000 people and manufactures in more than a dozen countries worldwide, will use the Kneat Gx platform initially to digitize its Commissioning, Qualification and Validation workflows for facilities, equipment and computer systems at several lead manufacturing sites. Also in June 2025, Kneat announced the retirement of its CFO Hugh Kavanagh. The role will be filled by Dave O'Reilly, who joined Kneat in July. Dave served most recently as CFO of Ekco, a leading European managed security service provider, which he helped scale from startup to a business with $200 million in annual revenue. Prior to his time at Ekco he led the international finance function for a $4 billion-SaaS business, Consensus Cloud Solutions/Ziff Davis Inc., formerly J2 Global. In July, Kneat launched Kneat Gx 9.5, which advances the data management capabilities of our platform. New features include greater management and control over discrete datasets; deeper functionality for defining, regulating and tracing datasets to align with risk-based validation; and more advanced filtering and visibility for Requirements, Risks and Test evidence, critical pillars of effective and efficient validation. These features enable users to save time by leveraging data across more projects than ever before; empowering risk-based validation processes such as Computer Software Assurance; and exerting greater control over traceability that adapts to any workflow. 'Kneat's long history of solid execution is extended with the results reported today. I look forward to continuing the disciplined financial stewardship that precedes me in this role, and with it, Kneat's continuous scaling of the value we deliver to the Life Sciences industry." - Dave O'Reilly, Chief Financial Officer of Kneat. Quarterly Conference Call Eddie Ryan, Chief Executive Officer of Kneat and Dave O' Reilly, Chief Financial Officer of Kneat, along with outgoing Chief Financial Officer, Hugh Kavanagh, will host a conference call to discuss Kneat's second-quarter results and hold a Q&A for analysts and investors via webcast on Wednesday, August 6, 2025, at 9:00 a.m. ET. Interested parties can register for the live webcast via the following link: Register Here. About Kneat Kneat Solutions provides leading companies in highly regulated industries with unparalleled efficiency in validation and compliance through its digital validation platform Kneat Gx. As an industry leader in customer satisfaction, Kneat boasts an excellent record for implementation, powered by our user-friendly design, expert support, and on-demand training academy. Kneat Gx is an industry-leading digital validation platform that enables highly regulated companies to manage any validation discipline from end-to-end. Kneat Gx is fully ISO 9001 and ISO 27001 certified, fully validated, and 21 CFR Part 11/Annex 11 compliant. Multiple independent customer studies show up to 40% reduction in documentation cycle times, up to 20% faster speed to market, and a higher compliance standard. For more information visit Supplementary and Non-IFRS Financial Measures The Company uses supplementary financial measures as key performance indicators in its MD&A and other communications. Management uses both IFRS measures and supplementary, non-IFRS financial measures as key performance indicators when planning, monitoring and evaluating the Company's performance. Annual Recurring Revenue ('ARR') Kneat management use ARR to evaluate and assess the Company's performance, identify trends affecting its business, formulate financial projections and make financial decisions. The Company believes that ARR is a useful metric for investors as it provides a measure of the value of the recurring revenue at a point in time (end date of the relevant quarter). ARR is based on signed agreements and indicates the level of recurring revenue that the Company would anticipate reporting in a 12-month period based on the full annual SaaS and maintenance fees for existing customers. In specific circumstances, the Company may utilize pricing incentives for limited contract periods. These incentives are not included in the calculation of ARR. ARR is used by Kneat to assess the expected recurring revenues from the customers that are live on the Kneat Gx platform at the end of the period. ARR is calculated using the licenses delivered to customers at the period end, multiplied by the expected customer retention rate of 100% and multiplied by the full agreed annual SaaS license or maintenance fee. Since many of the customer contracts are in currencies other than the Canadian dollar, the Canadian dollar equivalent is calculated using the related period end exchange rate multiplied by the contracted currency amount. Earnings before Interest, Taxes, Depreciation and Amortization ('EBITDA') EBITDA is calculated as net income (loss) attributable to excluding interest income (expense), provision for income taxes, depreciation and amortization. We provide and use this non-IFRS measure of our operating performance to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures and to inform financial comparisons with other companies. A reconciliation of EBITDA to IFRS financial measures is provided in the financial statements accompanying this press release. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization ('Adjusted EBITDA') Adjusted EBITDA is calculated as net income (loss) attributable to excluding interest income (expense), provision for income taxes, depreciation and amortization, foreign exchange gain and stock-based compensation expense. We provide and use this non-IFRS measure of our operating performance to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures and to inform financial comparisons with other companies. A reconciliation of Adjusted EBITDA to IFRS financial measures is provided in the financial statements accompanying this press release. Cautionary and Forward-Looking Statements Except for the statements of historical fact contained herein, certain information presented constitutes 'forward-looking information' within the meaning of applicable Canadian securities laws. Such forward-looking information includes, but is not limited to, the relationship between Kneat and the customer, Kneat's business development activities, the use and implementation timelines of Kneat's software within the customer's validation processes, the ability and intent of the customer to scale the use of Kneat's software within the customer's organization, our ability to win business from new customers and expand business from existing customers, our expected use of the net proceeds from the IPF Facility and the public equity financing completed in both February and October 2024 and the anticipated effects thereof on the business and operations of the company, and the compliance of Kneat's platform under regulatory audit and inspection. These and other assumptions, risks and uncertainties may cause Kneat's actual results, performance, achievements and developments to differ materially from the results, performance, achievements or developments expressed or implied by forward-looking statements. Material risks and uncertainties relating to our business are described under the headings 'Cautionary Note Regarding Forward-Looking Statements and Information' and 'Risk Factors' in our MD&A dated August 5, 2025, under the heading 'Risk Factors' in our Annual Information Form dated February 26, 2025 and in our other public documents filed with Canadian securities regulatory authorities, which are available at Forward-looking statements are provided to help readers understand management's expectations as at the date of this release and may not be suitable for other purposes. Readers are cautioned not to place undue reliance on forward-looking statements. Kneat assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as expressly required by law. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at an investor's own risk. For further information: Unaudited Condensed Interim Consolidated Statements of Income/(Loss) and Comprehensive Loss Three-month period ended June 30, 2025 Three-month period ended June 30, 2024 Six-month period ended June 30, 2025 Six-month period ended June 30, 2024 $ $ $ $ Revenue 15,405,109 11,675,734 30,152,750 22,442,735 Cost of revenue (3,777,809) (2,982,094) (7,600,954) (5,816,109) Gross profit 11,627,300 8,693,640 22,551,796 16,626,626 Expenses Research and development (5,702,497) (4,761,889) (10,401,162) (8,807,437) Sales and marketing (6,129,942) (4,368,485) (11,246,419) (8,400,169) General and administrative (3,792,405) (2,194,999) (6,304,034) (4,300,588) Operating loss (3,997,544) (2,631,733) (5,399,819) (4,881,568) Finance expense (877,545) (870,905) (1,766,090) (1,738,356) Interest income 151,053 172,999 349,692 208,075 Foreign exchange gain 4,429,193 258,049 8,691,793 19,286 (Loss) income before income taxes (294,843) (3,071,590) 1,875,576 (6,392,563) Income tax expense (84,299) (28,553) (108,729) (44,440) Net (loss) income for the period (379,142) (3,100,143) 1,766,847 (6,437,003) Other comprehensive loss Foreign currency translation adjustment to presentation currency (1,833,771) (234,170) (3,832,292) (43,276) Comprehensive loss for the period (2,212,913) (3,334,313) (2,065,445) (6,480,279) (Loss)/Earnings per share - Basic and diluted (0.00) (0.04) 0.02 (0.08) Weighted-average number of common shares outstanding: Basic 94,728,598 85,581,420 94,469,559 83,293,224 Diluted 94,728,598 85,581,420 97,985,267 83,293,224 Reconciliation: Net (loss) income for the period (379,142) (3,100,143) 1,766,847 (6,437,003) Finance expense 877,545 870,905 1,766,090 1,738,356 Interest income (151,053) (172,999) (349,692) (208,075) Income tax expense 84,299 28,553 108,729 44,440 Depreciation charge 181,718 190,394 358,719 381,615 Amortization of intangible assets charge 3,155,635 2,688,851 6,002,381 4,523,062 EBITDA 3,769,002 505,561 9,653,074 42,395 Adjustments to EBITDA Foreign exchange gain (4,429,193) (258,049) (8,691,793) (19,286) Stock based compensation 1,090,175 1,338,990 1,787,193 2,151,163 Adjusted EBITDA 429,984 1,586,502 2,748,474 2,174,272 inc. Unaudited Condensed Interim Consolidated Statements of Financial Position June 30, 2025 December 31, 2024 $ $ Assets Current assets Cash 66,771,997 58,889,572 Amounts receivable 11,176,423 18,377,009 Prepayments 1,861,908 1,870,095 79,810,328 79,136,676 Non-current assets Amounts receivable 4,798,361 2,368,006 Property and equipment 8,057,345 6,782,179 Intangible asset 41,999,419 36,290,869 Total Assets 134,665,453 124,577,730 Liabilities Current liabilities Accounts payable and accrued liabilities 11,071,328 8,580,104 Contract liabilities 26,550,906 21,631,416 Loan payable 6,012,075 4,116,723 Lease liabilities 401,739 434,096 44,036,048 34,762,339 Non-current liabilities Contract liabilities 3,063 33,393 Loan payable and accrued interest 17,338,181 19,038,203 Lease liabilities 6,911,364 5,671,952 Total Liabilities 68,288,656 59,505,887 Equity Shareholders' equity 66,376,797 65,071,843 Total Liabilities and Equity 134,665,453 124,577,730 inc. Unaudited Condensed Interim Consolidated Statement of Cash Flows Six-month period ended June 30, 2025 Six-month period ended June 30, 2024 Operating activities $ $ Net income (loss) for the period 1,766,847 (6,437,003) Charges to income (loss) not involving cash: Depreciation of property and equipment 358,719 381,615 Share-based compensation 1,787,193 2,151,163 Interest expense 1,672,870 1,738,356 Tax expense 108,729 44,440 Amortization of the intangible asset 6,002,381 4,523,062 Amortization of loan issuance costs 93,220 76,194 Foreign exchange gain (8,691,793) (19,286) (Decrease)/increase in non-current contract liabilities (31,359) 38,241 Net change in non-cash operating working capital related to operations 12,481,190 7,533,596 Net cash provided by operating activities 15,547,997 10,030,378 Financing activities Proceeds received from public equity financing - 20,000,110 Share issuance costs associated with public equity financing - (1,626,257) Payment of principal and interest on loans payable (3,154,648) (1,232,889) Proceeds from the exercise of stock options 989,061 1,051,787 Repayment of lease liabilities (394,650) (364,423) Net cash (used in)/provided by financing activities (2,560,237) 17,828,328 Investing activities Additions to the intangible asset (10,599,886) (9,675,371) Additions to property and equipment (96,462) (50,397) Collection of research and development tax credits 1,887,789 2,336,619 Net cash used in investing activities (8,808,559) (7,389,149) Effects of exchange rates on cash 3,703,224 170,762 Net change in cash during the period 7,882,425 20,640,319 Cash – Beginning of period 58,889,572 15,252,526
Yahoo
6 days ago
- Business
- Yahoo
Zebra Technologies to Acquire Elo to Accelerate Connected Frontline Experiences
Acquisition will advance vision of digitizing and automating frontline operations and is expected to be immediately accretive to earnings once closed LINCOLNSHIRE, Ill. & KNOXVILLE, Tenn., August 05, 2025--(BUSINESS WIRE)--Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating frontline workflows, today announced it has entered into a definitive agreement to acquire Elo Touch Solutions, Inc., an innovator of solutions that engage customers, enhance self-service, and accelerate automation across retail, hospitality, quick service restaurants (QSR), healthcare, and industrial markets for $1.3 billion in cash. With complementary portfolios and similar go-to-market strategies, together, Zebra and Elo will deliver a comprehensive portfolio that meets the evolving needs of their customers in close partnership with leading Independent Software Vendors (ISVs), payment solutions providers (PSPs), value-added resellers (VARs) and distributors. Expanding Portfolio to Accelerate the Connected Frontline Across Industries Zebra's leadership in hardware, software and services for the frontline worker will be augmented by Elo's suite of consumer-facing kiosks, edge computing, payment and touchscreen solutions to deliver a more comprehensive frontline experience. "This acquisition represents the next step in our journey to accelerate the connected frontline, which is a key tenet of our growth strategy," said Bill Burns, Chief Executive Officer, Zebra Technologies. "An increased focus on self-service and consumer-facing workflows will expand our addressable market by approximately $8 billion and create a leading portfolio of solutions that digitize and automate the frontline of business. We look forward to welcoming the Elo team to Zebra and pursuing new growth opportunities together following the closing of the acquisition." Customers across industries are increasingly adopting new solutions enabled by kiosks and interactive touchscreen displays. Elo offers a wide range of industry-tailored solutions which modernize point-of-sale (POS), streamline self-service and payment experiences, automate kitchen and industrial workflows, and optimize production and process management. This acquisition will strengthen Zebra's offerings in self-service use cases and complement its recently launched kiosk solution. Capitalizing on Key Customer Trends in the Modern Store Together with Elo, Zebra will be well positioned to capitalize on trends impacting retail and beyond. The combined business will empower retailers and QSRs to elevate consumer experiences within the AI-powered Modern Store. The planned addition of Elo's portfolio will give Zebra customers and partners more choice and, over time, a more holistic approach to address their emerging use cases. The continued growth of retail media networks and the deployment of new AI-based agents on the frontline are examples of new opportunities that Zebra and Elo can pursue more successfully together. According to Zebra's 17th Annual Global Shopper study, 78% of shoppers said self-checkout options improve their shopping experience. In addition, leading analysts have noted that traditional POS technologies are advancing beyond store-only transactional services to enable an experience-led unified commerce strategy powered by new data streams. Zebra and Elo are well positioned to play an increasingly important role in the transformation of POS and self-checkout moving forward. Enhancing Growth with Complementary Solutions and Global Reach Zebra's global reach, extensive services capabilities, and deep customer relationships will accelerate Elo's expansion into new markets and geographies. "Combining Zebra's market-leading mobility, visibility, and automation solutions with our expertise in consumer-facing workflows will add significant value to our customers and partners," said Craig Witsoe, Chief Executive Officer, Elo. "We are excited about the opportunity to join Zebra and contribute to its growth strategy." Transaction Details Zebra expects to fund the $1.3 billion purchase price with a combination of cash on hand along with financing from its credit facility. The purchase price is subject to customary closing adjustments. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in 2025. Elo has annual sales of approximately $400 million with similar annual sales growth (5-7% over a cycle) and EBITDA margin profile as Zebra. The transaction is expected to be immediately accretive to earnings upon closing and generate an incremental $25 million of annual EBITDA through synergies by year three. Morgan Stanley & Co. LLC is serving as financial advisor and Kirkland & Ellis LLP as legal counsel to Zebra. Moelis & Company LLC is serving as financial advisor and Gibson, Dunn & Crutcher LLP as legal counsel to Elo. Crestview Partners has been a majority investor in Elo since 2018. Second Quarter 2025 Financial Results In a separate press release today, Zebra will report its second quarter results. The company will host a webcast to discuss results, outlook, and its planned acquisition of Elo today, Aug. 5, at 8:30 a.m. Eastern Time. The webcast can be accessed on Zebra's investor relations website at Zebra Technologies Safe Harbor Statement This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company's outlook, the statements regarding the proposed acquisition, regulatory approvals, the expected benefits of (such as accretion to earnings and cost savings through realization of cost and revenue synergies) and strategic initiatives relating to the proposed acquisition, including expansion of Zebra's addressable market and deeper market penetration and the ability to complete the proposed acquisition on the expected timetable or at all. Actual results may differ from those expressed or implied in the company's forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release. These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra's industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra's hardware and software products and competitors' product offerings, and the potential effects of technological changes. The continued uncertainty over future global economic conditions, the availability of credit and capital markets volatility may have adverse effects on Zebra, its suppliers and its customers. In addition, a disruption in our ability to obtain products from vendors as a result of supply chain constraints, natural disasters or other circumstances could restrict sales and negatively affect customer relationships. Profits and profitability will be affected by Zebra's ability to control manufacturing and operating costs. Because of its debt, including debt expected to be incurred to finance the purchase price of the proposed acquisition, interest rates and financial market conditions will also have an impact on results. Foreign exchange rates, customs duties and trade policies will have an effect on financial results. The outcome of litigation in which Zebra may be involved, including litigation related to the proposed acquisition, is another factor. The ability of the parties to consummate the proposed acquisition on the expected timetable or at all, whether as a result of litigation related to the proposed acquisition or otherwise, satisfaction or waiver of the conditions precedent to the consummation of the proposed acquisition, including the receipt of required regulatory approvals, diversion of management's time on transaction-related issues that result in disruption to Zebra's current plans and operations, including in the event of litigation related to the proposed acquisition, the impact of announcements relating to the proposed acquisition, including adverse effects on the market price of Zebra's common stock or credit ratings, the success and timeliness of integrating Elo, including Zebra's ability to timely and successfully achieve the anticipated benefits and potential synergies of the proposed acquisition and other unexpected costs resulting from the proposed acquisition could also affect profitability, reported results and the company's competitive position in its industry. These and other factors could have an adverse effect on Zebra's sales, gross profit margins and results of operations and increase the volatility of our financial results. As a result of these and other factors, Zebra can give no assurance that the conditions precedent to the consummation of the proposed acquisition will be satisfied, or that it will close within the anticipated time period or at all, and you are cautioned not to place undue reliance on any of the forward-looking statements contained in this release. When used in this release and documents referenced, the words "anticipate," "believe," "outlook," and "expect" and similar expressions, as they relate to the company or its management or the proposed acquisition, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of the risks, uncertainties and other factors that could affect the company's future operations and results can be found in Zebra's filings with the Securities and Exchange Commission, including the company's most recent Form 10-K and Form 10-Q. ABOUT ZEBRA TECHNOLOGIES Zebra (NASDAQ: ZBRA) provides the solutions to help businesses grow through increased asset visibility, connected frontline workers and intelligent automation. The company operates in more than 100 countries, and our customers include over 80% of the Fortune 500. Designed for the frontline, Zebra's award-winning portfolio includes hardware, software, and services, all backed by our 50+ years of innovation and global partner ecosystem. Follow Zebra on our blog and LinkedIn, visit our newsroom and learn more at ABOUT ELO Elo delivers solutions that connect businesses and customers through purpose-built touchscreens, software, and services—powering more than 35 million installations across 80+ countries. From self-service kiosks and point-of-sale to patient check-in and factory automation, Elo offers a modular platform built on a unified architecture and supported by a global partner network. With screen sizes ranging from handheld to 65 inches and seamless device management via EloView, businesses can deploy, control, and scale with ease. Learn more at ABOUT CRESTVIEW Founded in 2004, Crestview is a New York-based private equity firm focused on the middle market. The firm manages funds with approximately $10 billion of aggregate capital commitments and is led by a group of partners who have complementary experience and backgrounds in private equity, finance, operations and management. Crestview has senior investment professionals focused on sourcing and managing investments in each of the specialty areas of the firm: media, industrials, and financial services. For more information, please visit ZEBRA and the stylised Zebra head are trademarks of Zebra Technologies Corp., registered in many jurisdictions worldwide. All other trademarks are the property of their respective owners. ©2025 Zebra Technologies Corp. and/or its affiliates. View source version on Contacts InvestorsMichael Steele, CFA, IRCVice President, Investor RelationsPhone: + 1 847 518 6432InvestorRelations@ Media Therese Van RyneSenior Director, External CommunicationsPhone: + 1 847 370
Associated Press
6 days ago
- Business
- Associated Press
Zebra Technologies to Acquire Elo to Accelerate Connected Frontline Experiences
LINCOLNSHIRE, Ill. & KNOXVILLE, Tenn.--(BUSINESS WIRE)--Aug 5, 2025-- Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating frontline workflows, today announced it has entered into a definitive agreement to acquire Elo Touch Solutions, Inc., an innovator of solutions that engage customers, enhance self-service, and accelerate automation across retail, hospitality, quick service restaurants (QSR), healthcare, and industrial markets for $1.3 billion in cash. With complementary portfolios and similar go-to-market strategies, together, Zebra and Elo will deliver a comprehensive portfolio that meets the evolving needs of their customers in close partnership with leading Independent Software Vendors (ISVs), payment solutions providers (PSPs), value-added resellers (VARs) and distributors. Expanding Portfolio to Accelerate the Connected Frontline Across Industries Zebra's leadership in hardware, software and services for the frontline worker will be augmented by Elo's suite of consumer-facing kiosks, edge computing, payment and touchscreen solutions to deliver a more comprehensive frontline experience. 'This acquisition represents the next step in our journey to accelerate the connected frontline, which is a key tenet of our growth strategy,' said Bill Burns, Chief Executive Officer, Zebra Technologies. 'An increased focus on self-service and consumer-facing workflows will expand our addressable market by approximately $8 billion and create a leading portfolio of solutions that digitize and automate the frontline of business. We look forward to welcoming the Elo team to Zebra and pursuing new growth opportunities together following the closing of the acquisition.' Customers across industries are increasingly adopting new solutions enabled by kiosks and interactive touchscreen displays. Elo offers a wide range of industry-tailored solutions which modernize point-of-sale (POS), streamline self-service and payment experiences, automate kitchen and industrial workflows, and optimize production and process management. This acquisition will strengthen Zebra's offerings in self-service use cases and complement its recently launched kiosk solution. Capitalizing on Key Customer Trends in the Modern Store Together with Elo, Zebra will be well positioned to capitalize on trends impacting retail and beyond. The combined business will empower retailers and QSRs to elevate consumer experiences within the AI-powered Modern Store. The planned addition of Elo's portfolio will give Zebra customers and partners more choice and, over time, a more holistic approach to address their emerging use cases. The continued growth of retail media networks and the deployment of new AI-based agents on the frontline are examples of new opportunities that Zebra and Elo can pursue more successfully together. According to Zebra's 17th Annual Global Shopper study, 78% of shoppers said self-checkout options improve their shopping experience. In addition, leading analysts have noted that traditional POS technologies are advancing beyond store-only transactional services to enable an experience-led unified commerce strategy powered by new data streams. Zebra and Elo are well positioned to play an increasingly important role in the transformation of POS and self-checkout moving forward. Enhancing Growth with Complementary Solutions and Global Reach Zebra's global reach, extensive services capabilities, and deep customer relationships will accelerate Elo's expansion into new markets and geographies. 'Combining Zebra's market-leading mobility, visibility, and automation solutions with our expertise in consumer-facing workflows will add significant value to our customers and partners,' said Craig Witsoe, Chief Executive Officer, Elo. 'We are excited about the opportunity to join Zebra and contribute to its growth strategy.' Transaction Details Zebra expects to fund the $1.3 billion purchase price with a combination of cash on hand along with financing from its credit facility. The purchase price is subject to customary closing adjustments. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in 2025. Elo has annual sales of approximately $400 million with similar annual sales growth (5-7% over a cycle) and EBITDA margin profile as Zebra. The transaction is expected to be immediately accretive to earnings upon closing and generate an incremental $25 million of annual EBITDA through synergies by year three. Morgan Stanley & Co. LLC is serving as financial advisor and Kirkland & Ellis LLP as legal counsel to Zebra. Moelis & Company LLC is serving as financial advisor and Gibson, Dunn & Crutcher LLP as legal counsel to Elo. Crestview Partners has been a majority investor in Elo since 2018. Second Quarter 2025 Financial Results In a separate press release today, Zebra will report its second quarter results. The company will host a webcast to discuss results, outlook, and its planned acquisition of Elo today, Aug. 5, at 8:30 a.m. Eastern Time. The webcast can be accessed on Zebra's investor relations website at Zebra Technologies Safe Harbor Statement This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company's outlook, the statements regarding the proposed acquisition, regulatory approvals, the expected benefits of (such as accretion to earnings and cost savings through realization of cost and revenue synergies) and strategic initiatives relating to the proposed acquisition, including expansion of Zebra's addressable market and deeper market penetration and the ability to complete the proposed acquisition on the expected timetable or at all. Actual results may differ from those expressed or implied in the company's forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release. These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra's industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra's hardware and software products and competitors' product offerings, and the potential effects of technological changes. The continued uncertainty over future global economic conditions, the availability of credit and capital markets volatility may have adverse effects on Zebra, its suppliers and its customers. In addition, a disruption in our ability to obtain products from vendors as a result of supply chain constraints, natural disasters or other circumstances could restrict sales and negatively affect customer relationships. Profits and profitability will be affected by Zebra's ability to control manufacturing and operating costs. Because of its debt, including debt expected to be incurred to finance the purchase price of the proposed acquisition, interest rates and financial market conditions will also have an impact on results. Foreign exchange rates, customs duties and trade policies will have an effect on financial results. The outcome of litigation in which Zebra may be involved, including litigation related to the proposed acquisition, is another factor. The ability of the parties to consummate the proposed acquisition on the expected timetable or at all, whether as a result of litigation related to the proposed acquisition or otherwise, satisfaction or waiver of the conditions precedent to the consummation of the proposed acquisition, including the receipt of required regulatory approvals, diversion of management's time on transaction-related issues that result in disruption to Zebra's current plans and operations, including in the event of litigation related to the proposed acquisition, the impact of announcements relating to the proposed acquisition, including adverse effects on the market price of Zebra's common stock or credit ratings, the success and timeliness of integrating Elo, including Zebra's ability to timely and successfully achieve the anticipated benefits and potential synergies of the proposed acquisition and other unexpected costs resulting from the proposed acquisition could also affect profitability, reported results and the company's competitive position in its industry. These and other factors could have an adverse effect on Zebra's sales, gross profit margins and results of operations and increase the volatility of our financial results. As a result of these and other factors, Zebra can give no assurance that the conditions precedent to the consummation of the proposed acquisition will be satisfied, or that it will close within the anticipated time period or at all, and you are cautioned not to place undue reliance on any of the forward-looking statements contained in this release. When used in this release and documents referenced, the words 'anticipate,' 'believe,' 'outlook,' and 'expect' and similar expressions, as they relate to the company or its management or the proposed acquisition, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of the risks, uncertainties and other factors that could affect the company's future operations and results can be found in Zebra's filings with the Securities and Exchange Commission, including the company's most recent Form 10-K and Form 10-Q. ABOUT ZEBRATECHNOLOGIES Zebra (NASDAQ: ZBRA) provides the solutions to help businesses grow through increased asset visibility, connected frontline workers and intelligent automation. The company operates in more than 100 countries, and our customers include over 80% of the Fortune 500. Designed for the frontline, Zebra's award-winning portfolio includes hardware, software, and services, all backed by our 50+ years of innovation and global partner ecosystem. Follow Zebra on our blog and LinkedIn, visit our newsroom and learn more at ABOUT ELO Elo delivers solutions that connect businesses and customers through purpose-built touchscreens, software, and services—powering more than 35 million installations across 80+ countries. From self-service kiosks and point-of-sale to patient check-in and factory automation, Elo offers a modular platform built on a unified architecture and supported by a global partner network. With screen sizes ranging from handheld to 65 inches and seamless device management via EloView, businesses can deploy, control, and scale with ease. Learn more at ABOUT CRESTVIEW Founded in 2004, Crestview is a New York-based private equity firm focused on the middle market. The firm manages funds with approximately $10 billion of aggregate capital commitments and is led by a group of partners who have complementary experience and backgrounds in private equity, finance, operations and management. Crestview has senior investment professionals focused on sourcing and managing investments in each of the specialty areas of the firm: media, industrials, and financial services. For more information, please visit ZEBRA and the stylised Zebra head are trademarks of Zebra Technologies Corp., registered in many jurisdictions worldwide. All other trademarks are the property of their respective owners. ©2025 Zebra Technologies Corp. and/or its affiliates. View source version on CONTACT: Investors Michael Steele, CFA, IRC Vice President, Investor Relations Phone: + 1 847 518 6432 [email protected] Therese Van Ryne Senior Director, External Communications Phone: + 1 847 370 2317 [email protected] KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS TENNESSEE INDUSTRY KEYWORD: SOFTWARE OTHER RETAIL PAYMENTS HARDWARE ARTIFICIAL INTELLIGENCE TECHNOLOGY RETAIL OTHER TECHNOLOGY SOURCE: Zebra Technologies Corporation Copyright Business Wire 2025. PUB: 08/05/2025 06:25 AM/DISC: 08/05/2025 06:25 AM
