The portable barcode label scanner and printer company Zebra Technologies (NASDAQ: ZBRA 148.15 USD) has announced it will be buying Xplore Technologies (NASDAQ: XPLR 5.94 USD). Xplore is a maker of rugged tablets and handheld computers, with solutions for Oil & Gas, Mining, Construction and more. Xplore is a leader in technology for industries that need protection from shock, vibrations, impact, etc. As computers and tablets are becoming more widespread in sectors like mining and construction, Zebra Technologies acquirement of Xplore might grow both their product line and create better solutions for industries that demand a lot physically from their technology.
Zebra will be paying $6 USD per share of Xplore in cash, totalling around $90 million – a premium on Xplore’s market cap of $65 million.
“In today’s on-demand economy, investments to digitize operations are central to our customers’ strategies. The acquisition of Xplore enhances our product lineup and gives Zebra a complete rugged tablet portfolio that enables our customers to gain a performance edge. We’d previously outlined potential areas of expansion that are a natural fit for Zebra and its Enterprise Asset Intelligence vision, and this acquisition is aligned with that strategy. The addition of Xplore provides access to a great team and great products in an attractive market and should enable us to grow the category double digits going forward.” said Anders Gustafsson, the chief executive officer of Zebra Technologies.
Zebra Technology, founded in 1969, has been a buyer of small fish with significant potential, having acquired 14 companies since 1998. Notably, Zebra purchased Motorola Solutions Enterprise business in 2014 for 3.45 billion. This acquisition provided mobile computing and advanced data capture communication technologies and services to Zebra’s growing product range.
The deal is expected to close by Q3 2018.
“We are excited to join Zebra, the worldwide leader in enterprise mobility and visibility. This acquisition validates the incredible work our team does every day to develop innovative solutions and serve our customers… Our products are a natural fit for Zebra, creating a comprehensive rugged mobility portfolio that stands against any competitor.” said Tom Wilkinson, the chief executive officer of Xplore Technologies.