Benzinga | Jul 19, 2021 09:13AM EDT

Novanta To Acquire ATI For $172M Cash Plus Earnout

* Novanta Inc (NASDAQ:NOVT) inked an agreement to acquire ATI Industrial Automation for $172 million upfront in cash and earnout consideration based on 2021 financial performance.

* Additionally, Novanta will also grant performance stock units.

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

* ATI is a leading supplier of intelligent end-of-arm technology solutions to original equipment manufacturers (OEMs) for advanced industrial and surgical robots.

* The business adds intelligent technology solutions and expands Novanta's position in mission-critical robotic applications, like electric vehicle production, medical robotics, and collaborative robotics.

* Additionally, it creates a nearly $250 million Precision Motion Segment with significant engineering competency.

* The acquisition is likely to be accretive to Novanta's free cash flow and EPS on a full-year basis.

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

* Price action: NOVT shares closed at $132.84 on Friday.