Tech equipment co Novanta slumps after pricing $550 mln equity units

Novanta

07/11/2025 17:10

** Shares of Novanta Inc NOVT.O, precision technology provider for medical and advanced industrial applications, down 4.3% to more than three-week low $102.65 after capital raise

    ** Bedford, Massachusetts-headquartered NOVT early Fri announced pricing $550 mln 6.5%
    3-year mandatory convertible tangible equity units offering

    ** Initial threshold appreciation price of $134.08 is 25% above stock's last close of $107.26

    ** NOVT shares on Thurs tumbled 19% for biggest daily drop in 16 years after unveiling offering late Weds

    ** 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

    ** With the move on the session, NOVT shares have lost one-third YTD

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

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