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
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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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