Novanta Acquires ATI Industrial Automation

Novanta Inc., a technology partner to medical and advanced technology equipment manufacturers, has acquired privately held ATI Industrial Automation (ATI) for $172 million upfront in cash and additional contingent cash payments associated with 2021 financial performance. In addition, to further incentivize future financial performance, the company will also grant performance stock units. 
 
ATI is a supplier of intelligent end-of-arm technology solutions to original equipment manufacturers (OEMs) for advanced industrial and surgical robots. ATI develops, manufactures, and sells products such as robotic changing systems, force/torque sensors, and collision sensors for industrial, collaborative, and medical robotic applications. These products enable OEMs and end-users to increase safety, versatility, and productivity of their robotic systems. Founded in 1989, the business has over 350 employees and is headquartered outside Raleigh, N.C.
 
“ATI is a fantastic business with proprietary intellectual property in attractive and growing markets. The business adds intelligent technology solutions and expands Novanta’s position in mission critical robotic applications, such as electric vehicle production, medical robotics, and collaborative robotics,” said Matthijs Glastra, CEO and chairman of Novanta. “In addition, the transaction creates a nearly $250 million Precision Motion Segment with significant engineering competency to further accelerate our growth.”
 
“We are excited to join Novanta at this stage of our development. We expect the combination of competencies and cultures to create better opportunities for our customers and employees,” said Bob Little, CEO of ATI. “We feel confident our shared values, our passion for innovation, and our deep application knowledge will create stronger partnerships with our customers to help us accelerate our strategic goals.”
 
The acquisition is expected to be accretive to Novanta’s free cash flow and non-GAAP earnings per share on a full year basis. ATI’s expected 2021 revenue will be greater than $70 million on a full year basis. 
 
Novanta is a global supplier of core technology solutions that give medical and advanced industrial OEMs a competitive advantage. The company combines deep proprietary technology expertise and competencies in photonics, vision and precision 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 its customers’ demanding applications. The driving force behind the company’s growth is the team of professionals who share a commitment to innovation and customer success.