Novanta will acquire privately held ATI Industrial Automation, a supplier of intelligent end-of-arm technology solutions for industrial and surgical robots. The deal is worth $172 million upfront in cash and additional contingent cash payments associated with 2021 financial performance. The transaction is expected to close in the third quarter of 2021.

ATI develops, manufactures, and sells products such as robotic changing systems, force/torque sensors, and collision sensors for industrial, collaborative, and medical robotic applications.

The addition creates a nearly $250 million precision motion segment for the Novanta, company CEO and chairman Matthijs Glastra said in a press release.

“The business adds intelligent technology solutions and expands Novanta’s position in mission critical robotic applications, such as electric vehicle production, medical robotics, and collaborative robotics,” Glastra said. In a conference call following the acquisition announcement, on Monday morning July 19, Glastra said ATI's robotic changing systems will pair with Novanta's existing laser beam steering technology and capabilities to support the combined company's manufacture and development of electric vehicles. Robotic changing systems support the process of automating the task of switching tools in the middle of manufacturing processes.

On July 12, Novanta announced its acquisition of Schneider Electric Motion USA (SEM), a manufacturer of motion control components for automation equipment, in a deal worth $115 million. SEM has approximately 60 employees and is headquartered in Marlborough, Conn. The acquisition, Novanta said, is intended to support automation and robotic applications through advanced motion control systems.

The SEM transaction is also expected to close in the third quarter of 2021.