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Less than one week after announcing it’s acquiring Schneider Electric Motion USA for $115 million in cash, Novanta announced it’s acquiring ATI Industrial Automation for $172 million in cash. The price could increase if ATI hits certain financial goals in 2021. The acquisition is expected to close in Q3 2021.
Founded in 1989, ATI is a leading developer of end-of-arm tooling, including robotic changing systems, force/torque sensors, and collision sensors for industrial, collaborative, and medical robotic applications. Raleigh, North Carolina-based ATI has 350-plus employees. In January 2021, for example, ATI released a slew of end-of-arm tooling kits for FANUC’s CRX Series cobot arms.
Novanta put together a presentation about the ATI acquisition. Novanta said acquiring ATI expands its presence in robotics, adds end-of-arm tooling to its product lineup, increases its customer base, and adds 60 patents to its already strong IP portfolio.
According to the presentation, ATI is expected to generate more than $70 million in sales in 2021. That means the sales price to Novanta is about 2.5x.
“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, CEO, 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.”
Read about more acquisitions and investments into robotics companies in The Robot Report‘s investment section.