Tech equipment co Novanta drops on planned $550 mln equity units deal

Novanta

06/11/2025 13:39

** Shares of Novanta Inc NOVT.O, precision technology provider for medical and advanced industrial applications, down 6% premarket at $124.53 as it seeks capital raise

    ** Bedford, Massachusetts-headquartered NOVT late Weds commenced offering of 11 mln 3-year mandatory convertible tangible equity units for $550 mln

    ** Co intends to use portion of net offering proceeds to repay approx $317 mln of indebtedness under its revolver, and for working capital and potential acquisitions, among other uses

    ** JP Morgan and BofA are joint bookrunners

    ** NOVT, which is incorporated in Canada, has ~35.78 mln shares outstanding for $4.7 bln market cap as of Weds

    ** Late Mon, NOVT said Q3 rev grew 1.4% y/y to $247.8 mln and posted adj EPS of 87 cents vs 85 cents a year ago

    ** Through Weds close, shares gained about 27% over the past month, leaving them down 13% YTD

    ** 2 analysts rate NOVT "strong buy" or "buy", 2 others rate "hold"; median PT is $158.50, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))