Zebra Buys Elotouch

What Next For the Self-Service Industry?

We heard about it last week and noted it on the homepage. Zebra has a knack for this. Think Motorola for example. Rumors were that Crestview wasn’t entirely happy with the results at Elo.  Rumors of the sale were at RetailNOW.  We are sad to see Elotouch, once again, sold off. They are one of our earliest entries in our kiosk history.

Elo Touch Solutions (or Elo TouchSystems, Tyco, Gore, Elographics, CarrollTouch, AccuTouch, IntelliTouch) started in 1971.

From LinkedIn off the cuff — It was quick dash off for me. Good to be timely and all I really did is provide context and pose some relevant questions. Elo has really shortchanged interactive digital signage. Medical is still there for sure. Competitors abound for sure. The Chinese are getting extremely good but they face 20% tariffs. Ironically the companies in touch that will benefit will be Microtouch (expelled Elo people :-), TDS, Insight Touch, EKAA (OEM for Advantech?), etc — TSI welcomed the news I am sure. Several very large kiosk manufacturers stopped using Elo years ago (Kiosk Information Systems and Pyramid/Diebold roll off the tongue. Most kiosk companies only use Elo if the client requests. Would love to add your comments and thoughts to post.

For the longest time, Elo sold touchscreens. Good ones albeit not cheap. In 2017 Elo began selling the Wallaby. Basically a modified IBM Kiosk. At that point it was selling direct to customers and became a competitor to kiosk companies. See Little Clinic and Kroger.

Digital signage was always tied down to touch and Elo was slow to enter large format digital signage or interactive digital signage. Classrooms in schools were a big miss.

Biggest impacts of acquisition?

• Zebra retail and grocery expansion at expense of NCR
• Kiosks are relatively small but cheaper high quality touchscreens for POS
• Elo has no software
• Zebra has shown a knack for managing companies very well and Elo needed that.

Back to Zebra and now…

Zebra’s strategy has consistently focused on supplementing its core barcode, printing, and asset intelligence business with additional capabilities in mobility, automation, machine vision, and artificial intelligence—demonstrating a pattern of regular acquisitions almost every year or two.

We think the area of highest growth is in Self-Checkout SCO technology.

Best to start at financial filings we think.

Consolidated Segment Revenue Table (Six Months Ended June 28, 2025)

Notes from the 10-Q

• Zebra’s main revenue channels are the sale of hardware products (tangible products) and the recurring stream from services and cloud/software subscriptions.

• Retail—including grocery—is a major customer base within both segments, though Zebra aggregates these results within overall segment and geographic reporting.

• The EVM segment, which includes self-checkout, mobile computing, and automation, is larger by revenue and more driven by high-growth software and service offerings.

Key Effects of the Acquisition

• Expanded Product Portfolio & Market Reach: The addition of Elo’s consumer-facing touchscreen technology—including self-service kiosks, payment terminals, and display solutions—expands Zebra’s portfolio, positioning the company to address an $8 billion larger market across grocery, retail, restaurants, healthcare, and industrial automation.ainvest+2

• Comprehensive Self-Checkout Solutions: By integrating Elo’s proven kiosk hardware and software with Zebra’s strengths in barcode scanning, mobile computing, RFID, and AI, Zebra will be able to offer end-to-end SCO systems. This will provide grocers with unified solutions combining self-service kiosks, mobile self-scanning, automated payment, real-time inventory, and vision-based loss prevention.inkworldmagazine+3

• Faster, Flexible Digital Transformation: Grocery retailers are under increasing pressure to reduce labor costs, minimize checkout lines, and improve the shopper experience. Elo’s scalable, modular touchscreens and kiosks already power many grocery SCO systems, providing proven platforms that can be rapidly deployed, customized, and centrally managed.gorspa+2

• Synergy with Zebra Technology: Zebra’s investments in machine vision, edge AI, and RFID can now be more tightly integrated at the consumer touchpoint, enabling kiosks and SCO stations to feature advanced produce recognition, real-time loss detection, and dynamic shopper engagement. This can help address the industry-wide challenges of shrink (loss/theft), user error, and slow adoption rates that have troubled some U.S. grocers using SCO.supermarketnews+3

• Immediate Earnings & Longer-Term Growth: The move will be immediately accretive to Zebra’s earnings, with $25 million in annual EBITDA synergies projected within three years, and Elo’s 5-7% growth expected to accelerate through Zebra’s distribution network and R&D resources.ainvest+2

Specific Impact on Grocery Store SCO

• Augmented Self-Checkout Stations: Grocery stores will benefit from more customizable and integrated SCO stations—combining Elo’s user-friendly touchscreens and kiosks with Zebra’s robust peripherals (presentation scanners, scales, RFID readers, printers) for a faster, reliable, and more secure checkout.ecrs+2

• Unified Platform: Zebra’s software-driven management and reporting will work alongside Elo’s hardware, making it easier for grocers to deploy, update, and maintain SCO stations chain-wide.spacepole+2

• Enhanced Customer Experience: The merged capabilities will allow for easier handling of produce (with vision or RFID-assisted identification), seamless loyalty/discount integration, and support for a broader range of payment and digital engagement—key drivers for shopper satisfaction in grocery SCO environments.youtubezebra

• Addressing Industry Trends: According to Zebra’s latest shopper research, over three-quarters of U.S. consumers now say self-checkout improves their shopping experience, and approximately 35% of grocery shoppers regularly opt for SCO. The integration of Elo’s technology is aimed at capitalizing on and further expanding this adoption.criticalcommunicationsreview+1

Summary:
Zebra’s acquisition of Elo will enable the company to deliver more comprehensive, intelligent, and user-friendly self-checkout solutions for grocery retailers. By combining market-leading consumer-facing kiosks with back-end automation, vision, and mobility technologies, Zebra is positioned to set the new standard for SCO and self-service in grocery and other sectors—helping stores modernize the checkout process, reduce shrink, and improve shopper satisfaction

• 2014: Completed its largest acquisition to date by purchasing Motorola Solutions’ Enterprise Business for $3.45 billion, including Symbol Technologies and Psion product lines.mergr+3

• Note the most popular scanner for kiosks at the time was the Symbol 3200.  Reminds us of the Magtek 21065xxx series of magswipe readers.  And Elotouch touchscreen of course.

• 2018: Acquired Xplore Technologies, a maker of ruggedized tablets.zebra+1

• 2019: Acquired Temptime Corporation (temperature monitoring for healthcare) and Profitect (retail software for inventory loss tracking).zebra+1

• 2020: Acquired Reflexis Systems, a workforce scheduling and task management software provider, for $575 million.punchcardinvestor.substack+1

• 2021: Acquired Adaptive Vision (machine vision software), Fetch Robotics (autonomous mobile robots, $305 million), and Antuit.ai (AI-powered SaaS for forecasting and merchandising, $145 million).punchcardinvestor.substack+1

• 2022: Acquired Matrox Imaging, a machine vision components and systems developer.wikipedia

• 2024: Announced intent to acquire Photoneo, expanding 3D machine vision capabilities.zebra

• 2025 (pending): Announced the acquisition of Elo Touch Solutions for $1.3 billion to enhance self-service and touchscreen offerings, expected to close in 2025.

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Press Release

Acquisition will advance vision of digitizing and automating frontline operations and is expected to be immediately accretive to earnings once closed

LINCOLNSHIRE, Ill. and KNOXVILLE, Tenn. – Aug. 5, 2025 – Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating frontline workflows, today announced it has entered into a definitive agreement to acquire Elo Touch Solutions, Inc., an innovator of solutions that engage customers, enhance self-service, and accelerate automation across retail, hospitality, quick service restaurants (QSR), healthcare, and industrial markets for $1.3 billion in cash.

With complementary portfolios and similar go-to-market strategies, together, Zebra and Elo will deliver a comprehensive portfolio that meets the evolving needs of their customers in close partnership with leading Independent Software Vendors (ISVs), payment solutions providers (PSPs), value-added resellers (VARs) and distributors.

Expanding Portfolio to Accelerate the Connected Frontline Across Industries

Zebra’s leadership in hardware, software and services for the frontline worker will be augmented by Elo’s suite of consumer-facing kiosks, edge computing, payment and touchscreen solutions to deliver a more comprehensive frontline experience.

“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, Chief Executive Officer, 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.”

Customers across industries are increasingly adopting new solutions enabled by kiosks and interactive touchscreen displays. Elo offers a wide range of industry-tailored solutions that modernize point-of-sale (POS), streamline self-service and payment experiences, automate kitchen and industrial workflows, and optimize production and process management. This acquisition will strengthen Zebra’s offerings in self-service use cases and complement its recently launched kiosk solution.

Capitalizing on Key Customer Trends in the Modern Store 

Together with Elo, Zebra will be well-positioned to capitalize on trends impacting retail and beyond. The combined business will empower retailers and QSRs to elevate consumer experiences within the AI-powered Modern Store. The planned addition of Elo’s portfolio will give Zebra customers and partners more choice and, over time, a more holistic approach to address their emerging use cases. The continued growth of retail media networks and the deployment of new AI-based agents on the frontline are examples of new opportunities that Zebra and Elo can pursue more successfully together.

According to Zebra’s 17th Annual Global Shopper Study, 78% of shoppers said self-checkout options improve their shopping experience. In addition, leading analysts have noted that traditional POS technologies are advancing beyond store-only transactional services to enable an experience-led unified commerce strategy powered by new data streams. Zebra and Elo are well-positioned to play an increasingly important role in the transformation of POS and self-checkout moving forward.

Enhancing Growth with Complementary Solutions and Global Reach

Zebra’s global reach, extensive services capabilities, and deep customer relationships will accelerate Elo’s expansion into new markets and geographies.

“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, Chief Executive Officer, Elo. “We are excited about the opportunity to join Zebra and contribute to its growth strategy.”

Transaction Details

Zebra expects to fund the $1.3 billion purchase price with a combination of cash on hand along with financing from its credit facility. The purchase price is subject to customary closing adjustments. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in 2025.

Elo has annual sales of approximately $400 million with similar annual sales growth (5-7% over a cycle) and EBITDA margin profile as Zebra. The transaction is expected to be immediately accretive to earnings upon closing and generate an incremental $25 million of annual EBITDA through synergies by year three.

Morgan Stanley & Co. LLC is serving 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. Crestview Partners has been a majority investor in Elo since 2018.

Second Quarter 2025 Financial Results

In a separate press release today, Zebra will report its second quarter results. The company will host a webcast to discuss results, outlook, and its planned acquisition of Elo today, Aug. 5, at 8:30 a.m. Eastern Time. The webcast can be accessed on Zebra’s investor relations website at investors.zebra.com.

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, the statements regarding the proposed acquisition, regulatory approvals, the expected benefits of (such as accretion to earnings and cost savings through realization of cost and revenue synergies) and strategic initiatives relating to the proposed acquisition, including expansion of Zebra’s addressable market and deeper market penetration and the ability to complete the proposed acquisition on the expected timetable or at all. 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, including debt expected to be incurred to finance the purchase price of the proposed acquisition, interest rates and financial market conditions will also have an impact on results. Foreign exchange rates, customs duties, and trade policies will have an effect on financial results. The outcome of litigation in which Zebra may be involved, including litigation related to the proposed acquisition, is another factor. The ability of the parties to consummate the proposed acquisition on the expected timetable or at all, whether as a result of litigation related to the proposed acquisition or otherwise, satisfaction or waiver of the conditions precedent to the consummation of the proposed acquisition, including the receipt of required regulatory approvals, diversion of management’s time on transaction-related issues that result in disruption to Zebra’s current plans and operations, including in the event of litigation related to the proposed acquisition, the impact of announcements relating to the proposed acquisition, including adverse effects on the market price of Zebra’s common stock or credit ratings, the success and timeliness of integrating Elo, including Zebra’s ability to timely and successfully achieve the anticipated benefits and potential synergies of the proposed acquisition and other unexpected costs resulting from the proposed acquisition 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. As a result of these and other factors, Zebra can give no assurance that the conditions precedent to the consummation of the proposed acquisition will be satisfied, or that it will close within the anticipated time period or at all, and you are cautioned not to place undue reliance on any of the forward-looking statements contained in this release. 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 or the proposed acquisition, 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 and Form 10-Q.

ABOUT ZEBRA TECHNOLOGIES

Zebra (NASDAQ: ZBRA) provides the solutions to help businesses grow through increased asset visibility, connected frontline workers and intelligent automation. The company operates in more than 100 countries, and our customers include over 80% of the Fortune 500. Designed for the frontline, Zebra’s award-winning portfolio includes hardware, software, and services, all backed by our 50+ years of innovation and global partner ecosystem. Follow Zebra on our blog and LinkedIn, visit our newsroom and learn more at www.zebra.com.

ABOUT ELO

Elo delivers solutions that connect businesses and customers through purpose-built touchscreens, software, and services—powering more than 35 million installations across 80+ countries. From self-service kiosks and point-of-sale to patient check-in and factory automation, Elo offers a modular platform built on a unified architecture and supported by a global partner network. With screen sizes ranging from handheld to 65 inches and seamless device management via EloView, businesses can deploy, control, and scale with ease. Learn more at www.elotouch.com.

ABOUT CRESTVIEW

Founded in 2004, Crestview is a New York-based private equity firm focused on the middle market. The firm manages funds with approximately $10 billion of aggregate capital commitments and is led by a group of partners who have complementary experience and backgrounds in private equity, finance, operations and management. Crestview has senior investment professionals focused on sourcing and managing investments in each of the specialty areas of the firm: media, industrials, and financial services. For more information, please visit www.crestview.com.

Investors
Michael Steele, CFA, IRC
Vice President, Investor Relations
Phone: + 1 847 518 6432
[email protected]

Media
Therese Van Ryne
Senior Director, External Communications
Phone: + 1 847 370 2317
[email protected]

More Zebra Buys Elo Resource Links

• Zebra Technologies Q4 2014 – Year of Android
• Zebra Kiosk Insight – Healthcare, Utility Bill Payment
• Kiosk Business is Booming

Interesting Back Stories

For very large projects, I used a Dell LCD.  We attached the Elo touchscreen overlay. Halfway thru the project Elo changed the power feed and required a power brick (extra $20).  We got around that by cutting edge lead on PCB board and returned it to USB powered.  Not exactly regulation for sure.  Elo of course wondered why we never ordered the bricks. 

And to compound the situation, I found a major Dell reseller willing to sell at a discount to Dells OEM price. Same warranty/service. So we bought those. Dell OEM people hated me and searched for two years trying to identify my source.  I think they used a picture of me for a dartboard in their office.