NI's acquisition of Kratzer Automation AG’s test systems business
NI has announced it has entered into a definitive agreement to purchase the test systems business of Kratzer Automation AG. This agreement further expands NI’s investment in the high growth area of vehicle electrification and enhances customer connections with key original equipment manufacturers (OEM).
By providing EV testing software and fully integrated test systems, NI will help enable customers to achieve the scale at which the EV market is growing, driven by consumer demand, global regulations, and the push for sustainable transportation. NI tests all critical components of EV including battery, inverter, and engine control. The combined strength of NI’s flexible EV Hardware and software test platform with Kratzer Automation AG’s application specific EV software and integration capabilities will provide holistic customer solutions that will enable faster responses to changing test needs, accelerating time to market and lowering total cost of test for a broader range of customers.
“The addition of the products, service capability and experienced team from Kratzer Automation AG will help strengthen our ability to provide complete customer centric solutions direct to automotive OEMs and further expand our serviceable market and customer footprint in the fast-growing area of electrification.” said Drita Roggenbuck, NI Sr. Vice President and General Manager, Transportation. “This is another example of prioritizing inorganic investments that accelerate the growth areas of our business.”
The transaction is expected to add approximately two percent to revenue in 2022. There should be minimal cost synergies, due to the complementary nature of the acquired business relative to NI’s transportation business. We expect this transaction to become accretive in year two through expected revenue synergy. NI will fund this transaction through cash drawn from its existing revolving credit facility. The deal is subject to statutory approvals and is expected to close in Q2 2022 with approximately 200 employees joining NI.
The focus of this acquisition is to accelerate NI’s ability to serve customers in high growth EV applications. This acquisition further strengthens the company’s ability to achieve the 2022 targets of 16% to 18% year over year revenue growth and we remain committed to our goal of 20 percent non-GAAP operating margin.