Zebra Technologies (ZBRA 147.77, -0.55, -0.37%) is acquiring Xplore Technologies
(XPLR 5.95, +1.83, +44.41%) in a $90 mln dollar deal (including the assumption of debt) at a ~46%
Zebra sells automatic identification and data capture (AIDC) products worldwide, including mobile computers, radio frequency identification device readers, barcode scanners, specialty printers for barcode labeling, and real-time location systems.
Over its 22-year history, Xplore has established a leading position in its industry as an innovative developer of highly differentiated products, including semi-, fully- and ultra-rugged tablets; 2-in-1 laptops (hybrid portable computers that can transition between laptop and tablet functionalities); and a portfolio of performance matched accessories. Xplore's products are designed to withstand demanding conditions across diverse end markets. These products serve existing vertical markets for Zebra, such as retail, manufacturing, transportation and logistics, and healthcare, and provide an inroad into new markets, including oil and gas, utility, government, and public safety.
Xplore also announced fiscal 2018 results (ending May) this morning. Revenue grew 11.6% to $87 mln while earnings flipped to a $0.03/share profit from a $0.23 loss in the prior year.
Xplore Chief Executive Officer Tom Wilkinson stated: "As promised, we reported a strong finish to fiscal 2018, delivering an almost 12% increase in annual sales, positive GAAP net income for the year and significant progress on our transformation into a diversified, profitable rugged mobility company serving an addressable market in excess of $4 billion. Our success as the #2 global provider of rugged tablets and strong growth outlook earned the notice of Zebra Technologies, the global leader in rugged mobile computers, barcode scanners and barcode printers."
This is a relatively small deal for Zebra, which has a nearly $8 bln valuation and trades at 15x EPS estimates.
Zebra stock is up 43% year-to-date after beating quarterly estimates and offering upside guidance two quarters in a row.
Zebra will likely report second quarter results in the first week of August.
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