Zebra Technologies (NASDAQ: ZBRA), a Lincolnshire, IL-based provider of solutions that enable businesses to gain a performance edge, is to acquire Profitect Inc., a Burlington, Mass.-based provider of prescriptive analytics for the retail and consumer packaged goods (CPG) industries.
The amount of the deal – subject to customary closing conditions and expected to close in the second quarter of 2019 – was not disclosed.
Zebra expects to fund the acquisition with a combination of cash on hand along with financing available under its credit facility.
Led by Guy Yehiav, Chief Executive Officer, who will be a key leader in the business integration, Profitect provides a solution that identifies opportunities to positively impact sales and margin for retail and CPG brands. The company 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, customers typically realize sales lift, as well as margin and labor productivity improvement enabling a better overall consumer experience.
The acquisition aims to enable Zebra to extend its Intelligent Edge Solutions portfolio and advance its Enterprise Asset Intelligence vision. 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, the company will work with its partners to empower front-line workers – across all verticals – with the insights they need to make smart decisions.
Led by Anders Gustafsson, Chief Executive Officer, Zebra 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, it delivers end-to-end solutions that intelligently connect people, assets and data to help customers make business-critical decisions.