Zebra Technologies Corp. announced it has agreed to acquire Elo Touch Solutions in a $1.3 billion cash deal, a move the company said will expand its reach into self-service technologies and consumer-facing workflows.
The deal, expected to close in 2025 pending regulatory approval and other customary conditions, brings together two complementary portfolios with a shared focus on the frontlines of commerce and industry. Elo is known for its kiosks, interactive touch screen displays and payment solutions used in retail, quick-service restaurants (QSRs) and industrial environments.
Zebra said the acquisition aligns with its broader strategy to digitize and automate the frontline of business, an approach that includes increased focus on AI-powered, self-service experiences. The company said the acquisition expands its addressable market by an estimated $8 billion.
“This acquisition represents the next step in our journey to accelerate the connected frontline, which is a key tenet of our growth strategy,” said Bill Burns, CEO of Zebra Technologies. “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. We look forward to welcoming the Elo team to Zebra and pursuing new growth opportunities together following the closing of the acquisition.”
With Elo’s presence in point-of-sale systems, kitchen automation and production workflow solutions, Zebra said the combined entity will be better positioned to help businesses meet rising demand for unified commerce and AI-driven customer engagement tools.
Citing findings from its 17th Annual Global Shopper Study, Zebra noted that 78% of shoppers say self-checkout improves their experience — a trend that both companies are poised to capitalize on through expanded offerings.
“Combining Zebra’s market-leading mobility, visibility, and automation solutions with our expertise in consumer-facing workflows will add significant value to our customers and partners,” said Craig Witsoe, CEO of Elo. “We are excited about the opportunity to join Zebra and contribute to its growth strategy.”
Zebra will finance the acquisition using cash on hand and credit facility funding. The company said the transaction will be immediately accretive to earnings and is expected to deliver $25 million in annual EBITDA synergies within three years.
Elo currently generates approximately $400 million in annual sales. Crestview Partners has been its majority investor since 2018.
Morgan Stanley & Co. LLC is acting as financial advisor and Kirkland & Ellis LLP as legal counsel to Zebra. Moelis & Company LLC is serving as financial advisor and Gibson, Dunn & Crutcher LLP as legal counsel to Elo.