BEDFORD, Mass., July 5, 2017 /CNW/ -- Novanta Inc. (NASDAQ: NOVT) (the "Company", "we", "our", "Novanta"), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today the closing of its acquisition of World of Medicine GmbH ("World of Medicine") for €115 million in cash.
World of Medicine, based in Berlin, Germany, is the leading supplier to original equipment manufacturers ("OEMs") of regulatory controlled medical insufflators, pumps, and related disposables for the minimally invasive surgical market. The business operates as a full service provider to OEMs by developing customized solutions for mission critical applications, and by providing clinical validation, regulatory approval support, training and product servicing.
The Company financed this acquisition with its amended and restated credit facility. World of Medicine's revenue and profit contribution to Novanta's second half and full year 2017 financial results will be announced as part of Novanta's second quarter 2017 earnings release.
"We are very excited about the acquisition of World of Medicine, which accelerates our strategy of increased presence in medical end markets. This acquisition aligns well with our strategic priorities, and is expected to create substantial and lasting value for Novanta," said Matthijs Glastra, Chief Executive Officer of Novanta Inc.
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. These forward-looking statements include, but are not limited to, statements regarding operating or financial results, the success of our internal plans, and the expectations for the acquisition of World of Medicine to contribute to our future revenue and profit, free cash flow and non-GAAP earnings per share. 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. Such statements reflect the current beliefs of Company management and are not guarantees of future performance. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties include our ability to make and integrate our acquisitions and realize expected synergies. We also face other general risks, including our ability to realize cost savings from our operating initiatives; general economic conditions; unfavorable changes in foreign currency exchange rates; difficulties associated with exports; risks associated with our international operations; risks associated with newly acquired businesses; our significant dependence upon our customers' capital expenditures, which are subject to cyclical market fluctuations; increased warranty exposure; future competition; violations of our intellectual property rights and our ability to protect our intellectual property against infringement by third parties; our ability to attract and retain key personnel; disruptions in the supply of certain key materials or components; changes in the price for certain parts and components; changes in interest rates; changes in tax laws; credit ratings; failure to comply with local import and export regulations in the jurisdictions in which we operate; risks and cost associated with potential write-offs of our substantial intangible assets; and risks associated with maintaining regulatory compliance. 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, 2016, our subsequent filings with the Securities and Exchange Commission ("SEC"), and in our future filings with the SEC. Such 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 applicable law.
Novanta is a leading global supplier of core technology solutions that give healthcare and advanced industrial original equipment manufacturers ("OEMs") a competitive advantage. We combine a deep expertise of photonics, vision, and motion technologies 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 photonics, 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".
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 [email protected].
* * *
SOURCE Novanta Inc.