Veralto Corporation (NYSE: VLTO), a Waltham, MA-based company which specializes in essential water and product quality solutions, acquired TraceGains, a Broomfield, CO-based provider of cloud-based software solutions, for a purchase price of $350M (subject to customary post-closing adjustments).
With the acquisition, Velato will accelerate TraceGains’ growth, expand its market presence, and improve its operating efficiency.
Led by CEO Gary Nowacki, TraceGains is a provider of cloud-based software solutions that enable connected data and digital workflow management to help consumer brands meet increasingly stringent compliance and reporting regulations for food and beverage safety and traceability. Its solutions enable consumer brands to efficiently track ingredient inputs, monitor supplier quality and develop new products with greater safety and increased velocity. In 2024, TraceGains is expected to deliver just over $30m in sales, with more than 95% of sales on a recurring basis, and a gross margin of approximately 80%.
Led by Jennifer L. Honeycutt, President and Chief Executive Officer, Veralto is a global leader in essential technology solutions with a proven track record of solving some complex challenges the society face. Its Water Quality companies, Aquatic Informatics, ChemTreat, Hach, McCrometer, OTT HydroMet, Sea-Bird Scientific, Trojan Technologies, and XOS, help customers manage, treat, purify, and protect the global water supply, from municipal and wastewater treatment facilities to lakes, rivers, watersheds, and oceans. its Product Quality and Innovation companies, Esko, Linx, Pantone, Videojet, and X-Rite, help protect the world’s food, medicine, and essentials by enabling customers to track and authenticate the billions of goods that travel the global supply chain every day.
TraceGains is complementary to the company’s Product Quality and Innovation (“PQI”) segment, specifically, its Esko-branded digital workflow solutions for packaging and label design.
The company has 300+ locations worldwide, annual sales of $5 billion, and a global team of 16,000 associates.
Commenting on the news, Gary Nowacki said: “We are proud of the networked ecosystem TraceGains has built for the food and beverage industry and the tremendous growth we have delivered. We believe joining Veralto and partnering with its Esko business creates a powerful combination of two brands with deep expertise in digital workstream solutions for consumer brands. Furthermore, it enhances TraceGains’ ability to more rapidly expand industry use of our digital solutions that help customers increase transparency to ingredient inputs for food and beverage safety, speed up innovation of new recipes and significantly reduce time-to-market for new products.“
