Listen to this article
Novanta, a Bedford, Mass.-based supplier of technology solutions for medical and advanced equipment manufacturers, is acquiring Schneider Electric Motion USA (SEM) for $115 million in cash. The acquisition is expected to close in the third quarter of 2021.
SEM is a manufacturer of motion control components for automation equipment. It specializes in brushless motor technology, integrated motor drives and electronic controls. Founded in 1986 as Intelligent Motion Systems (IMS), the business develops solutions for applications demanding highly precise, controlled movement in areas including medical instruments, lab automation, robotics, and other advanced manufacturing applications. SEM has approximately 60 employees and is headquartered in Marlborough, Connecticut.
“SEM is expected to help our expansion into automation and robotic applications through advanced motion control solutions. The business is also anticipated to increase Novanta’s exposure to the Life Sciences and Medical end markets while broadening our access to sophisticated automation integrators,” said Matthijs Glastra, CEO and chairperson of Novanta. “The addition of SEM’s technology would expand our precision motion control portfolio, furthering our ability to serve customers with unique, high performance solutions.”
The transaction is subject to customary closing conditions, including regulatory approvals, and will be financed using available cash on hand 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. SEM’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.
Novanta said it expects the acquisition to increase the scale of its precision motion segment with an ability to cross sell to mutual customers.
Read about more acquisitions and investments into robotics companies in The Robot Report‘s investment section.