Zebra Technologies has announced its deal to acquire Elo Touch Solutions for $1.3 billion in cash, aiming to strengthen its position in digitizing and automating frontline workflows. The deal aligns with Zebra’s growth strategy to expand its capabilities in self-service, customer engagement, and automation across sectors such as retail, QSR, hospitality, healthcare, and industrial markets.
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The acquisition brings together Zebra’s strengths in mobility, software, and hardware with Elo’s consumer-facing kiosks, touchscreen, payment, and edge computing solutions. Zebra said the integration of Elo’s portfolio will enhance its ability to deliver a more connected and intelligent frontline experience, expanding its addressable market by approximately $8 billion.
“This acquisition represents the next step in our journey to accelerate the connected frontline,” said Zebra CEO Bill Burns. “An increased focus on self-service and consumer-facing workflows will create a leading portfolio that digitizes and automates the frontline of business.”
Elo, with around $400 million in annual revenue and EBITDA margins similar to Zebra, adds depth to Zebra’s offerings in interactive displays, self-checkout, and modernized point-of-sale technologies. It is expected to complement Zebra’s recently launched kiosk solution and position the combined company to capitalize on rising demand for AI-enabled and data-driven retail experiences.
The deal is anticipated to be accretive to Zebra’s earnings upon closing and to generate $25 million in annual EBITDA synergies by the third year. Zebra will fund the transaction through a mix of cash and credit facility financing. The deal is expected to close in 2025, subject to regulatory approvals and customary closing conditions.
With a shared go-to-market approach and partner ecosystem, Zebra and Elo aim to drive deeper engagement with ISVs, VARs, PSPs, and distributors to address emerging self-service and automation use cases across global markets.
Zebra Technologies reported second quarter 2025 net sales of $1,293 million, up from $1,217 million in the same period last year. The Enterprise Visibility & Mobility (EVM) segment generated $875 million in sales, compared to $820 million in the prior year, while the Asset Intelligence & Tracking (AIT) segment recorded $418 million, up from $397 million. Consolidated organic net sales grew 6.3 percent year-over-year, with EVM rising 6.5 percent and AIT increasing 5.8 percent.
Gross profit for the quarter reached $616 million, up from $589 million, though gross margin declined to 47.6 percent from 48.4 percent, impacted by approximately $10 million in U.S. import tariff expenses. Adjusted gross margin stood at 47.9 percent, compared to 48.6 percent a year ago. Operating expenses rose to $433 million from $422 million, with adjusted operating expenses increasing to $370 million from $358 million.
Net income was $112 million, or $2.19 per diluted share, slightly down from $113 million, or $2.17 per diluted share, in the prior year.
InfotechLead.com News Desk
