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Zebra targets kiosk-terminal-market with plans to acquire Elo

Just a year after launching its own kiosk solution, Zebra Technologies has announced plans to acquire Elo Touch Solutions for 1.3 billion US-Dollars. This move will enable the company to meet the growing demand from retailers for larger in-store touchpoints to display product information and serve as platforms for Retail Media, while accelerating Zebra’s expansion into self-checkout and further consumer-facing solutions.

The Retail Optimiser spoke with Mark Thomson, Retail Industry Director at Zebra, about the gigantic acquisition plans. “Retailers are under pressure to provide more interactive product information and new ways to generate revenue from in-store media,” says Mark Thomson: “With Elo we can provide larger and more engaging touchpoints, giving retailers more opportunities to interact with customers throughout the store. These same screens can display product information, run retail media or act as wayfinders in stores.”

The global market for kiosk systems is growing rapidly. The analysts group Fortune Business Insights projects a growth from 22.69 billion US-Dollar in 2021 to 51.05 billion US-Dollar in 2028 at a CAGR of 12.3 per cent in that period. Elo belongs to the major suppliers for kiosk systems, large-format touchscreens and payment-ready terminals and operates in markets from retail to quick service restaurants, healthcare, and industrial applications. Elo’s portfolio is a good fit with Zebra’s Modern Store strategy, which connects frontline employees, enables data-driven operations, and enhances shopper engagement.

The global market for kiosk systems is growing rapidly. The analysts group Fortune Business Insights projects a growth from 22.69 billion US-Dollar in 2021 to 51.05 billion US-Dollar in 2028 at a CAGR of 12.3 per cent in that period. Elo belongs to the major suppliers for kiosk systems, large-format touchscreens and payment-ready terminals and operates in markets from retail to quick service restaurants, healthcare, and industrial applications. Elo’s portfolio is a good fit with Zebra’s Modern Store strategy, which connects frontline employees, enables data-driven operations, and enhances shopper engagement.

Mark Thomson, Retail Industry Director at Zebra, spoke with The Retail Optimiser about the details of the gigantic acquisition. (Photo: Zebra Technologies)
Mark Thomson, Retail Industry Director at Zebra, spoke with The Retail Optimiser about the details of the gigantic acquisition. (Photo: Zebra Technologies)

Elo’s portfolio complements Zebra

Zebra and Elo already have many shared partners which is set to make the integration smoother and speed up market reach. Initially however, Elo will continue to operate as a separate business unit while pursuing its own growth plans.

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The acquisition is expected to accelerate Zebra’s expansion into the areas of self-checkout and retail media. Elo’s extensive portfolio is considered an ideal fit for both applications. Speaking with The Retail Optimiser, Mark Thomson points out that Zebra’s own kiosk line, launched in 2024, was intentionally Android-only to match retail preferences outside traditional POS use cases. “With Elo, Zebra gains a wider mix of Android and Windows-driven hardware, and therefore the ability to access multiple markets”.

Zebra focusses on the Connected Frontline

Accelerating the Connected Frontline is a key tenet of Zebra’s growth strategy given the massively growing Retail Media activities of major retail groups. Mark Thomson emphasises the role of Zebra’s software partners to support the retail organisations in bringing the growing number of touchpoints for shoppers on a connected retail platform. As example, Mark Thomson mentions Israeli software company Catch, which made a name for themselves by bringing Retail Media on shopping trolleys of retailers such as Rewe Group. Israeli supermarket operator Tiv Taam works with Catch’s AI-driven Retail Media platform based on Zebra tablets and handheld scanners mounted on shopping trolleys. This enables targeted advertising and product content to be displayed throughout the shopping experience.

Mark Thomson views Elo’s hardware as an extension of this approach: “Whether the touchpoint is on a cart, on a wall or at a kiosk, the goal is the same: to create more engagement opportunities and open new revenue streams for the retailer.”

Immediate earning increase expected

Pending regulatory approval, the acquisition is expected to close by the end of this year. Elo generates around 400 million US-Dollars in annual revenue and is forecast to be accretive to Zebra’s earnings immediately, with an additional 25 million US-Dollars in EBITDA expected from synergies within three years.

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Magdalena Nowak

Magdalena Nowak is a trainee in the editorial team of The Retail Optimiser. She has gained valuable insights into the processes of the industry during previous jobs on the retail floor. Magdalena Nowak is studying journalism at Johannes-Gutenberg-Universität in Mainz.

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