- Novanta acquires leading provider of embedded touch screen technology solutions serving OEM equipment suppliers across the medical and advanced industrial markets
BEDFORD, Mass., May 18, 2016 /CNW/ -- Novanta Inc. (NASDAQ: NOVT) (the "Company", "we", "our", or "Novanta"), a global leader and supplier of laser, precision motion, and vision technologies to original equipment manufacturers in the medical and advanced industrial markets, today announced that it has reached an agreement to acquire Reach Technology, a Fremont, California-based provider of embedded touch screen technology solutions for Original Equipment Manufacturers ("OEMs") in the medical and advanced industrial markets. The transaction is expected to close later this month.
Reach Technology specializes in embedded display panel technologies that deliver high-performance touch screen solutions for OEMs with a focus on medical applications. The business will be combined into Novanta's NDS Surgical Imaging business, which is located in San Jose, California. Reach Technology's family of high performance embedded touch screen technology will complement NDS's broad portfolio of medical grade displays.
"The combination of Reach Technology with NDS Surgical Imaging expands the range of medical display solutions to enhance our value proposition with medical OEM customers. We expect the combination of their customer breadth, technology leadership, and supply chain management will further increase our opportunities with leading medical OEM customers," said John Roush, Chief Executive Officer of Novanta.
"As a leader in high quality visualization solutions, offering the broadest portfolio of medical grade displays, the acquisition of Reach expands our addressable market by offering more application solutions to our customers," added Karim Khadr, President of NDS Surgical Imaging. "We are excited to have Reach Technology employees as part of our team, to further strengthen our engineering expertise in critical and demanding healthcare applications."
NDS Surgical Imaging is a leader in integrated Operating Room technologies for more than 20 years and provides clinical and technical expertise to OEM partners to deliver high performance visualization, image processing and wireless solutions to the healthcare market.
Reach Technology has been developing and manufacturing embedded touch screen solutions for more than 20 years and offers world class customer service and support to its customers. Reach Technology's products can be found across medical and advanced industrial applications.
Novanta is a leading global supplier of core technology solutions that give advanced industrial and healthcare OEMs a competitive advantage. We combine deep expertise at the intersection of photonics and motion 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. We deliver highly engineered laser, vision and precision motion solutions to customers around the world. 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".
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 our ability to generate profitable growth; the acquisition of Reach Technology enhancing our value proposition with medical OEM customers, increasing our opportunities with leading medical OEM customers and expanding our addressable market; 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 and level of business activity; our significant dependence upon our customers' capital expenditures, which are subject to cyclical market fluctuations; our dependence upon our ability to respond to fluctuations in product demand; our ability to continually innovate and successfully commercialize our innovations; failure to introduce new products in a timely manner; customer order timing and other similar factors beyond our control; disruptions or breaches in security of our information technology systems; changes in interest rates, credit ratings or foreign currency exchange rates; risk associated with our operations in foreign countries; our increased use of outsourcing in foreign countries; our failure to comply with local import and export regulations in the jurisdictions in which we operate; our reliance on third party distribution channels; 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 make divestitures that provide business benefits; 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; production difficulties and product delivery delays or disruptions; our compliance, or our failure to comply, with various federal, state and foreign regulations; changes in governmental regulation of our business or products; effects of conflict minerals regulations; our failure to comply with environmental regulations; our failure to implement new information technology systems and software successfully; our failure to realize the full value of our intangible assets; our exposure to the credit risk of some of our customers and in weakened markets; changes in tax laws, and fluctuations in our effective tax rates; being subject to U.S. federal income taxation even though we are a non-U.S. corporation; 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; volatility in the market price for our common shares; our ability to access cash and other assets of our subsidiaries; the influence over our business of certain significant shareholders; provisions of our articles of incorporation may delay or prevent a change in control; our significant existing indebtedness may limit our ability to engage in certain activities; 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, 2015, our subsequent filings with the Securities and Exchange Commission ("SEC"), and in our future filings with the SEC.
Forward-looking statements are based on the Company's beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this document except as required by law.
More information about Novanta is available on the Company's website at www.novanta.com. For additional information, please contact Novanta Inc. Investor Relations at (781) 266-5137 or InvestorRelations@novanta.com.
Investor Relations Contact:
Robert J. Buckley
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SOURCE Novanta Inc.