Novanta completes acquisition of Motion Solutions
Novanta Inc. (Nasdaq: NOVT) has completed the acquisition of Motion Solutions, a strategic fit offering high-precision, customized precision motion subsystems and components to market-leading OEMs. The acquisition strengthens Novanta's presence in precision medicine applications and creates potential for new intelligent subsystems using combined technology offerings.
The completion of Novanta Inc.'s acquisition of Motion Solutions represents a strategic move to bolster its presence in the precision motion subsystems and components sector, particularly within the medical and life sciences applications. This acquisition aligns with the broader industry trend where companies are consolidating to enhance their product offerings and penetrate deeper into high-growth markets. By integrating Motion Solutions, Novanta is likely to benefit from synergies in technology, innovation and customer base.
From a market perspective, the focus on precision medicine applications is of particular interest. The high-single-digit to low-double-digit growth rates mentioned signal a robust market demand. This growth is driven by the increasing need for advanced medical equipment in diagnostics, treatment and patient care, which in turn relies on precision motion technology. Stakeholders can anticipate potential revenue growth and market share expansion as a result of this acquisition.
Novanta's acquisition of Motion Solutions can be viewed as a financially strategic initiative aimed at capturing a larger share of the growing precision medicine market. The financial impact of this acquisition will likely be seen in the form of revenue growth and possibly improved margins due to economies of scale and operational efficiencies. The growth rates for the target market indicate a lucrative opportunity for Novanta to increase its top-line performance.
Investors should monitor the financials in upcoming quarters for evidence of accretive value from the deal. It will be important to assess the integration costs and how quickly Novanta can realize the expected synergies. The long-term success of the acquisition will hinge on Novanta's ability to leverage Motion Solutions' technological capabilities and customer relationships to drive innovation and sales in high-growth markets.
The acquisition of Motion Solutions by Novanta is a significant development in the medical technology space. Motion Solutions' expertise in high-precision motion subsystems is critical for the development of sophisticated medical devices. These devices require precise control and reliability, which are essential for applications such as robotic surgery, imaging and patient positioning systems.
As medical technology continues to evolve towards more personalized and precise treatments, the demand for such high-precision components is expected to grow. Novanta's combined technology offerings could lead to the development of new intelligent subsystems, potentially setting new industry standards. The long-term impact on the medical technology landscape could be substantial, with innovations stemming from this acquisition possibly leading to improved patient outcomes and more efficient healthcare delivery.
01/02/2024 - 04:15 PM
BEDFORD, Mass. --(BUSINESS WIRE)--
Novanta Inc. (Nasdaq: NOVT) (“Novanta” or the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that it has completed the acquisition of Motion Solutions.
“Motion Solutions is an excellent strategic fit to Novanta. Motion Solutions offers high-precision, customized precision motion subsystems and components to market-leading OEMs, largely centered on medical and life sciences applications. They are a market leading business, and their team shares a passion for customers, innovation, and solving complex technical challenges,” said Matthijs Glastra, Chair and Chief Executive Officer of Novanta. “By acquiring Motion Solutions, we advance Novanta’s strategy by increasing and strengthening our presence in very attractive precision medicine applications that are growing at high-single-digit to low-double-digit rates, and it creates the potential to develop new and unique intelligent subsystems using our combined technology offerings. We are excited to welcome the Motion Solutions team as they join Novanta.”
Safe Harbor and Forward-Looking Information
Certain statements in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as “expect,” “intend,” “anticipate,” “estimate,” “believe,” “future,” “could,” “should,” “plan,” “aim,” and other similar expressions. These forward-looking statements include, but are not limited to, statements regarding the risks related to Novanta’s ability to realize the anticipated benefits of the acquisition of Motion Solutions, including the possibility that the expected benefits will not be realized or will not be realized within the expected time period; our ability to successfully integrate Motion Solutions; and our ability to implement our plans, forecasts and other expectations with respect to Motion Solutions’ business and realize expected synergies; the effect of the announcement of the transaction on the ability of Motion Solutions to retain and hire key personnel and maintain relationships with its key business partners and customers, and others with whom it does business, or on its operating results and businesses generally; risks associated with the disruption of Motion Solutions management's attention from ongoing business operations due to the transaction; significant costs associated with the transaction; our expectation that Motion Solutions expands Novanta’s position in medical and life science markets; and other statements that are not historical facts.
These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including, but not limited to, the following: economic and political conditions and the effects of these conditions on our customers’ businesses, capital expenditures and level of business activities; risks associated with epidemics or pandemics, and other events outside our control; our dependence upon our ability to respond to fluctuations in product demand; our ability to continually innovate, introduce new products timely, and successfully commercialize our innovations; failure to introduce new products in a timely manner; customer order timing and other similar factors causing fluctuations in our operating results; cyberattacks, disruptions or other breaches in security of our and our third-party providers’ information technology systems; our failure to comply with data privacy regulations; changes in interest rates, credit ratings or foreign currency exchange rates; risks associated with our operations in foreign countries; our increased use of outsourcing in foreign countries; risks associated with increased outsourcing of components manufacturing; our exposure to increased tariffs, trade restrictions or taxes on our products; the continuing impact of “Brexit”; violations of our intellectual property rights and our ability to protect our intellectual property against infringement by third parties; risk of losing our competitive advantage; our failure to successfully integrate recent and future acquisitions into our business; our ability to attract and retain key personnel; our restructuring and realignment activities and disruptions to our operations as a result of consolidation of our operations; product defects or problems integrating our products with other vendors’ products; disruptions in the supply of certain key components or other goods from our suppliers; our failure to accurately forecast component and raw material requirements leading to excess inventories or delays in the delivery of our products; production difficulties and product delivery delays or disruptions; our exposure to medical device regulations, which may impede or hinder the approval or sale of our products and, in some cases, may ultimately result in an inability to obtain approval of certain products or may result in the recall or seizure of previously approved products; potential penalties for violating foreign and U.S. federal, and state healthcare laws and regulations; impact of healthcare industry cost containment and healthcare reform measures; changes in governmental regulations affecting our business or products; our failure to implement new information technology systems and software successfully; our failure to realize the full value of our intangible assets; increasing scrutiny and changing expectations from investors, customers, and governments with respect to Environmental, Social and Governance policies and practices; our reliance on original equipment manufacturer customers; being subject to U.S. federal income taxation even though we are a non-U.S. corporation; changes in tax laws, and fluctuations in our effective tax rates; our exposure to the credit risk of some of our customers and in weakened markets; any need for additional capital to adequately respond to business challenges or opportunities and repay or refinance our existing indebtedness, which may not be available on acceptable terms or at all; our existing indebtedness limiting our ability to engage in certain activities; volatility in the market price for our common shares; and our failure to maintain appropriate internal controls in the future.
Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company’s operating results and financial condition are discussed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as updated by our Quarterly Report on Form 10-Q for the quarterly period ended September 29, 2023 and other subsequent filings with the Securities and Exchange Commission. Such statements are based on the Company’s beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to publicly update or revise any information included in this release or any forward-looking statements as a result of developments occurring after the date of this document except as required by law.
About Novanta
Novanta is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary technology expertise and competencies in precision medicine and manufacturing, medical solutions, and robotics and automation with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to our customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation and customer success. Novanta’s common shares are quoted on Nasdaq under the ticker symbol “NOVT.”
More information about Novanta is available on the Company’s website at www.novanta.com . For additional information, please contact Novanta Investor Relations at (781) 266-5137 or InvestorRelations@novanta.com .
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Novanta Inc.
Source: Novanta Inc.
What is the ticker symbol for Novanta Inc.?
The ticker symbol for Novanta Inc. is NOVT.
What acquisition has Novanta Inc. completed?
Novanta Inc. has completed the acquisition of Motion Solutions.
What does Motion Solutions offer to market-leading OEMs?
Motion Solutions offers high-precision, customized precision motion subsystems and components to market-leading OEMs.
What is Novanta's strategy in acquiring Motion Solutions?
By acquiring Motion Solutions, Novanta aims to increase and strengthen its presence in precision medicine applications and create new intelligent subsystems using combined technology offerings.
Who is the Chair and CEO of Novanta Inc.?
Matthijs Glastra is the Chair and Chief Executive Officer of Novanta Inc.
