Zebra Technologies (ZBRA) on Thursday announced a deal to buy startup Fetch Robotics to accelerate its push into intelligent industrial automation. But ZBRA stock dropped on the news.
Lincolnshire, Ill.-based Zebra will pay $290 million in cash for the 95% of Fetch Robotics that it doesn’t already own. Zebra had earlier invested in Fetch as part of its Zebra Ventures initiative.
San Jose, Calif.-based Fetch makes autonomous mobile robots used for item picking in fulfillment and distribution centers and material delivery in manufacturing facilities.
“The acquisition of Fetch Robotics will accelerate our Enterprise Asset Intelligence vision,” Zebra Chief Executive Anders Gustafsson said in a news release.
ZBRA Stock Dips After Acquisition News
In addition to mobile robots, Fetch offers cloud-based software for deploying and integrating automated workflows into manufacturing and warehouse operations. Its software can provide insights about operations through machine learning.
Zebra and Fetch expect the transaction to close in the third quarter.
In morning trading on the stock market today, ZBRA stock fell 1.3%, near 522.45.
On June 3, ZBRA stock broke out of a cup-with-handle base at a buy point of 508.43, according to IBD MarketSmith charts. Since then, it has traded just in and out of the 5% chase zone, which extends to 533.85. ZBRA stock notched a record high of 538.51 on Wednesday.
Zebra Ranks First In Industry Group
Zebra makes rugged mobile computers, bar code scanners and printers, and RFID tracking tags that link to enterprise systems to enable real-time visibility of inventory and other assets. It offers systems for retail, e-commerce, health care, manufacturing, transportation and other industries.
ZBRA stock ranks first out of 32 stocks in IBD’s Electronics-Miscellaneous Products industry group, according to IBD Stock Checkup. That group ranks No. 48 out of 197 industry groups that IBD tracks.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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