In what can be called one of the most befitting mergers of the tech world, Zebra technologies, a computer printing products manufacturer, has finally decided to acquire Xplore technologies that are a known leader in the rugged tablet and tech devices market. The company has decided to obtain Xplore for 6 dollars per share which adds up to about 90 million dollars which is quite a jump from Xplore’s current market cap of 65 million dollars while Zebra is at a market cap of only 8 million USD.
This partnership will open up new avenues for Zebra giving them an opportunity to expand into various verticals like manufacturing, transportation, logistics, healthcare, and retail. It will also enable them to grow their customer base with the help of Xplore’s already existing place in the areas of the energy sector, military, government and public welfare service schemes. Although Xplore generated revenue of 87 million USD along with a net profit of 300,000 million USD as of 31st March 2018, it has never really been a profitable venture overall.
CEO of Zebra Technologies, Anders Gustafsson, was reported saying, “In today’s on-demand economy, investments to digitize operations are central to our customers’ strategies. The acquisition of Xplore enhances our product lineup and gives Zebra a complete rugged tablet portfolio that enables our customers to gain a performance edge” while Xplore CEO, Tom Wilkinson, responded by saying that, “We are excited to join Zebra, the worldwide leader in enterprise mobility and visibility. This acquisition validates the incredible work our team does every day to develop innovative solutions and serve our customers. Our products are a natural fit for Zebra, creating a comprehensive rugged mobility portfolio that stands against any competitor.”