Acquisition extends Intelligent Edge Solutions
portfolio and advances Enterprise Asset Intelligence vision
Zebra Technologies Corporation (NASDAQ: ZBRA), an innovator at
the edge of the enterprise with solutions and partners that enable
businesses to gain a performance edge, today announced it intends
to acquire Profitect Inc., a privately-held, leading provider of
prescriptive analytics for the retail and consumer packaged goods
(CPG) industries.
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Using machine learning and prescriptive analytics, Profitect’s
solution identifies opportunities to positively impact sales and
margin for some of the most recognized retail and CPG brands in the
world. Profitect uses data from across the value chain for
improving inventory and pricing accuracy, out of stocks, supply
chain inefficiency, unsellable merchandise, and assortment
discrepancies. The solution identifies a potential opportunity and
can generate suggested actions, sending them directly to a worker’s
mobile device, providing step-by-step instructions for resolution.
By enabling users to understand and act on data, Profitect
customers typically realize sales lift, as well as margin and labor
productivity improvement enabling a better overall consumer
experience.
Zebra will also leverage the investment to accelerate the
development of its Savanna data platform through the acquisition of
Profitect’s technology, talent, and skillsets. Combining the
real-time data that Zebra solutions capture, with Profitect’s
access to operational data, machine learning, and prescriptive
analytics, Zebra will work with its’ partners to empower front-line
workers even more – across all verticals - with the insights they
need to make better, faster, smarter decisions.
“The acquisition of Profitect expands our relevancy deeper and
wider in global retail operations while advancing our software
capabilities to make our Enterprise Asset Intelligence vision even
more accessible,” said Anders Gustafsson, Chief Executive Officer
of Zebra Technologies. “We have had a strong relationship with
Profitect for the past five years through Zebra Ventures, and we
are excited to take our strategic investment to the next level by
welcoming the Profitect team to the Zebra family.”
“We are excited to join Zebra and bring our award-winning
prescriptive analytics solution to every worker at the edge,” said
Guy Yehiav, Chief Executive Officer and Chairman of the Board of
Profitect, who will be a key leader in the business integration.
“Together we will ensure the workforce of the future is more
connected and optimally utilized. We value Zebra’s support and
expertise over the past five years as a key venture capitalist. I’m
proud of the contribution that Profitect’s solution will bring to
Zebra and look forward to working closely to deliver prescriptive
analytics as part of its innovative and broad solution
portfolio.”
Zebra expects to fund the acquisition of Profitect with a
combination of cash on hand along with fully committed financing
available under its credit facility. The transaction is subject to
customary closing conditions and is expected to close in the second
quarter of 2019. The transaction is expected to be immaterial to
sales and profitability in the near term. Financial terms of the
acquisition are not being disclosed.
Zebra Technologies Safe Harbor Statement
This press release contains forward-looking statements, as
defined by the Private Securities Litigation Reform Act of 1995,
including, without limitation, the statements regarding the
company’s outlook and the ability to complete the acquisition of
Profitect Inc. Actual results may differ from those expressed or
implied in the company’s forward-looking statements. These
statements represent estimates only as of the date they were made.
Zebra undertakes no obligation, other than as may be required by
law, to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, changed
circumstances or any other reason after the date of this
release.
These forward-looking statements are based on current
expectations, forecasts and assumptions and are subject to the
risks and uncertainties inherent in Zebra’s industry, market
conditions, general domestic and international economic conditions,
and other factors. These factors include customer acceptance of
Zebra’s hardware and software products and competitors’ product
offerings, and the potential effects of technological changes. The
continued uncertainty over future global economic conditions, the
availability of credit and capital markets volatility may have
adverse effects on Zebra, its suppliers and its customers. In
addition, a disruption in our ability to obtain products from
vendors as a result of supply chain constraints, natural disasters
or other circumstances could restrict sales and negatively affect
customer relationships. Profits and profitability will be affected
by Zebra’s ability to control manufacturing and operating costs.
Because of its debt, interest rates and financial market conditions
will also have an impact on results. Foreign exchange rates will
have an effect on financial results because of the large percentage
of our international sales. The outcome of litigation in which
Zebra may be involved is another factor. The success of integrating
acquisitions could also affect profitability, reported results and
the company’s competitive position in its industry. These and other
factors could have an adverse effect on Zebra’s sales, gross profit
margins and results of operations and increase the volatility of
our financial results. When used in this release and documents
referenced, the words “anticipate,” “believe,” “outlook,” and
“expect” and similar expressions, as they relate to the company or
its management, are intended to identify such forward-looking
statements, but are not the exclusive means of identifying these
statements. Descriptions of the risks, uncertainties and other
factors that could affect the company’s future operations and
results can be found in Zebra’s filings with the Securities and
Exchange Commission, including the company’s most recent Form
10-K.
ABOUT PROFITECT
Profitect’s prescriptive analytics solution leverages pattern
detection and machine learning to identify opportunities that
impact sales and margin. Profitect takes retail and CPG company
data to identify areas for improvement including: inventory
accuracy, out of stocks, pricing accuracy, unsellable merchandise,
and assortment discrepancies. Profitect customers typically realize
a two to five percent increase in sales, better consumer
experience, 10-15% basis point margin improvement, and labor
productivity improvement within six months. To learn more about
Profitect visit: www.profitect.com or follow the company
on Twitter and LinkedIn.
ABOUT ZEBRA
Zebra (NASDAQ: ZBRA) empowers the front line of business in
retail/ecommerce, manufacturing, transportation and logistics,
healthcare and other industries to achieve a performance edge. With
more than 10,000 partners across 100 countries, we deliver
industry-tailored, end-to-end solutions that intelligently connect
people, assets and data to help our customers make
business-critical decisions. Our market-leading solutions elevate
the shopping experience, track and manage inventory as well as
improve supply chain efficiency and patient care. Ranked on Forbes’
list of America’s Best Employers for the last four years, Zebra
helps our customers capture their edge. For more information, visit
www.zebra.com or sign up for our news alerts. Follow us on
LinkedIn, Twitter and Facebook.
ZEBRA and the stylized Zebra head are trademarks of Zebra
Technologies Corporation, registered in many jurisdictions
worldwide. All other trademarks are the property of their
respective owners. ©2019 Zebra Technologies Corporation and/or its
affiliates. All rights reserved.
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version on businesswire.com: https://www.businesswire.com/news/home/20190520005197/en/
Investor Contact:Mike Steele, CFA, IRCZebra
TechnologiesVice President, Investor
Relations+1.847.793.6707msteele@zebra.com
Media Contact:Therese Van RyneZebra TechnologiesDirector,
Global Public Relations+1.847.370.2317therese.vanryne@zebra.com
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