Zebra Raises 2025 Sales Growth Outlook to 7%, Acquires Elo for $1.3B Amid Resilient Demand.

Zebra Technologies has raised its 2025 sales growth outlook to 7% and announced the acquisition of Elo Touch Solutions for $1.3B. CEO William J. Burns described the acquisition as an "exciting milestone" to enhance the connected frontline experience.

Zebra Technologies has significantly revised its 2025 sales growth forecast, raising it to 7% from a previous estimate of 5% to 7%. The company also announced the acquisition of Elo Touch Solutions for $1.3 billion in cash. This strategic move aims to enhance the connected frontline experience across various industries.

Zebra Technologies, a leading provider of barcode scanners and mobile computers, reported strong second-quarter earnings of $3.61 per diluted share, up from $3.18 a year ago. This performance exceeded analyst expectations. The company also projected third-quarter earnings of $3.60 to $3.80 per share, with sales growth of 2% to 6% [1].

The acquisition of Elo Touch Solutions, an innovator in consumer-facing kiosks and touchscreen solutions, is expected to be immediately accretive to earnings once closed. The combined portfolio will offer a comprehensive solution set for digitizing and automating frontline workflows, expanding Zebra's addressable market by approximately $8 billion [2].

CEO William J. Burns described the acquisition as an "exciting milestone" that will accelerate the connected frontline experience. This move aligns with Zebra's growth strategy and complements its existing offerings, particularly in self-service use cases [2].

The transaction is expected to close in 2025, with funding coming from Zebra's cash on hand and financing from its credit facility. The acquisition is expected to generate an incremental $25 million of annual EBITDA through synergies by year three [2].

Zebra Technologies' updated outlook and strategic acquisition reflect growing confidence in the tech hardware sector and broader economic optimism. The company's strong performance and forward-looking guidance suggest that businesses are investing in efficiency and automation, which could have positive implications for logistics, retail, and manufacturing industries.

References:
[1] https://finimize.com/content/zebra-technologies-outpaces-expectations-and-lifts-2025-forecast
[2] https://www.elotouch.com/news/zebra-technologies-to-acquire-elo