Benzinga | Jul 12, 2021 08:43AM EDT

Novanta To Acquire Schneider Electric Motion USA For $115M Cash

* Novanta Inc (NASDAQ:NOVT) inked an agreement to acquire Schneider Electric Motion USA (SEM, IMS, or Intelligent Motion Systems) for $115 million in cash.

* The transaction is likely to close in Q3 of 2021.

* SEM is a motion control components manufacturer of automation equipment. The business develops critical solutions for applications demanding exact, controlled movement in medical instruments, lab automation, robotics, and other advanced manufacturing applications.

* It is likely to be accretive to Novanta's free cash flow and EPS.

* SEM is likely to help Novanta's expansion into automation and robotic applications through advanced motion control solutions. The business will drive Novanta's exposure to the Life Sciences and Medical end markets while broadening access to sophisticated automation integrators, Novanta CEO and Chair Matthijs Glastra said.

* The addition of SEM's technology would expand Novanta's precision motion control portfolio.

* Novanta held $113.6 million in cash and equivalents as of Apr. 2, 2021.

* Price action: NOVT shares closed lower by 0.41% at $136.98 on Friday.