Zebra Acquires Elo for $1.3B, Enhancing Frontline Automation & AI

Zebra Technologies Corporation has announced a definitive agreement to acquire Elo Touch Solutions, Inc. for $1.3 billion in cash. This acquisition is set to further Zebra’s goal of digitizing and automating frontline operations across various sectors, including retail, hospitality, quick-service restaurants (QSR), healthcare, and industrial markets.

The combination of Zebra’s and Elo’s portfolios is expected to deliver a comprehensive suite of solutions. Zebra, a leader in hardware, software, and services for frontline workers, will integrate Elo’s range of consumer-facing kiosks, edge computing, payment, and touchscreen solutions. This strategic move aims to enhance the connected frontline experience for businesses.

Bill Burns, CEO of Zebra Technologies, described the acquisition as a pivotal “next step” in the company’s growth strategy, aimed at accelerating the connected frontline. He noted that a stronger focus on self-service and consumer-facing workflows would expand Zebra’s addressable market by approximately $8 billion, establishing a leading portfolio for digitizing and automating business operations.

The acquisition comes as businesses increasingly adopt kiosks and interactive touchscreen displays. Elo’s offerings modernize point-of-sale (POS) systems, streamline self-service and payment experiences, and automate various workflows. This integration will strengthen Zebra’s self-service solutions and complement its recently launched kiosk offering.

The combined entity is well-positioned to capitalize on significant industry trends, particularly within retail. Zebra and Elo aim to empower retailers and QSRs to enhance consumer experiences within the evolving “AI-powered Modern Store” environment. This aligns with trends highlighted in Zebra’s 17th Annual Global Shopper study, which found that 78% of shoppers believe self-checkout options improve their shopping experience.

Craig Witsoe, CEO of Elo, commented that combining Elo’s expertise in consumer-facing workflows with Zebra’s market-leading mobility, visibility, and automation solutions will add significant value for customers and partners. He expressed enthusiasm for joining Zebra and contributing to its growth strategy.

Zebra plans to finance the $1.3 billion acquisition through a combination of cash on hand and its credit facility. Elo currently generates approximately $400 million in annual sales, with a growth rate (5-7% over a cycle) and EBITDA margin profile similar to Zebra’s. The transaction is expected to immediately contribute to Zebra’s earnings upon closing and to generate an additional $25 million in annual EBITDA through synergies within three years.

The acquisition is subject to customary closing conditions, including regulatory approval, and is anticipated to finalize in 2025.