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Computer peripherals industry

Zebra Technologies Completes Merger with Eltron International, Expanding Bar-Code Label Solutions

Strategic Insights

— 1 min read

Vernon Hills, Ill. - Zebra Technologies Corporation, a leader in bar-code labeling solutions, has completed the merger with Eltron International, Inc. The combination creates a company offering the broadest line of bar-code label output and plastic card printing solutions. Edward Kaplan, Zebra's chairman and chief executive officer, emphasized the benefits of the merger, citing combined research and development resources, worldwide distribution channels, and market coverage. With the merger complete, the integration process is expected to be finalized by late 1999.

Key Takeaways:

  • Zebra Technologies has completed the merger with Eltron International, Inc., expanding its bar-code label solutions.
  • The combined company offers a broad line of bar-code label output and plastic card printing solutions.
  • Edward Kaplan, Zebra's chairman and chief executive officer, expects the combined company to benefit from shared resources, distribution channels, and market coverage.
  • The merger is expected to be fully integrated by late 1999.
  • Donald K. Skinner, Eltron's chairman and chief executive officer, will become vice chairman of the combined company and head of the company's card printer business.
  • Eltron shareholders will receive a portion of Zebra's Class B common stock for each share of Eltron common stock.
  • The transaction is structured as a pooling-of-interests tax-free merger.
  • Forward-looking statements in this release are subject to various important factors that could cause actual results to differ from those reflected in such statements.

Statistics:

  • Combined sales of $256 million for the nine months ended October 3, 1998 (on a pro-forma basis).
  • Income from continuing operations of $40.4 million, or $1.30 per share on a diluted basis, for the nine months ended October 3, 1998 (on a pro forma basis).
  • The transaction is expected to be tax-free, as per the pooling-of-interests structure.

Sources:

  • Zebra Technologies Corporation press release (exact as mentioned in the original text).
  • Zebra's prospectus as of September 21, 1998, particularly the risk factors section (SEC filing).
  • Private Securities Litigation Reform Act of 1995 (as mentioned in the press release).

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