Zebra Technologies has agreed to acquire Elo Touch Solutions for $1.3 billion in cash, in a move that is said to expand its presence in self-service and consumer-facing technologies across multiple industries.

Illinois-based Zebra, which develops hardware, software and services for frontline workers, said the acquisition will add Elo’s portfolio of kiosks, touchscreen displays, payment and edge computing solutions to its existing offering. Together, the companies aim to strengthen their position in retail, hospitality, quick-service restaurants, healthcare and industrial markets.

Bill Burns, chief executive of Zebra, said the deal would expand the company’s addressable market by around $8 billion. “An increased focus on self-service and consumer-facing workflows will expand our addressable market by approximately $8 billion and create a leading portfolio of solutions that digitize and automate the frontline of business," he said. "We look forward to welcoming the Elo team to Zebra and pursuing new growth opportunities together following the closing of the acquisition.”

Elo, headquartered in Knoxville, Tennessee, generates annual sales of about $400 million. Backed by Crestview Partners since 2018, the company provides touchscreen and kiosk technologies used to modernise point-of-sale, streamline payments, and optimise workflows. Its CEO, Craig Witsoe, said the combination would “add significant value to our customers and partners”.

Zebra said it expects the deal to be immediately accretive to earnings upon completion and to generate an additional $25 million in annual EBITDA within three years through synergies. The acquisition will be funded through cash on hand and Zebra’s credit facility.

The transaction, subject to regulatory approval and customary closing conditions, is expected to close later in 2025.

Top image: © Elo Touch Solutions