RALEIGH, N.C.–(BUSINESS WIRE)–Vontier Corporation today announced results for the second quarter 2022 and that it has signed a definitive agreement to acquire Invenco, a leading global provider of open platform retailing and payment hardware and software solutions.
For the second quarter ended July 1, 2022, net earnings were $33.3 million and adjusted net earnings were $116.4 million. For the second quarter ended July 1, 2022, diluted net earnings per share were $0.21 and adjusted diluted net earnings per share were $0.72.
For the second quarter of 2022, revenue increased 7.2% year-over-year to $776.4 million, which reflected an increase in core revenue of 1.6%.
Mark D. Morelli, President and Chief Executive Officer, stated, “Strong execution, price and cost performance, and capital allocation drove double-digit earnings growth. I am incredibly pleased with our team’s ability to leverage the power of VBS to deliver adjusted gross margin expansion of 100 basis points and nearly 30% incremental margin despite continued supply chain and inflationary headwinds in the second quarter. Reflecting the strength and resiliency of our portfolio, the overall demand environment remains solid and underlying order trends and elevated backlog levels position us well for accelerated growth into the back half of this year and into 2023.”
For the third quarter of 2022, Vontier anticipates diluted net earnings per share to be in the range of $0.72 to $0.77 and adjusted diluted net earnings per share to be in the range of $0.85 to $0.90. For the full year 2022, Vontier anticipates diluted net earnings per share to be in the range of $3.30 to $3.40 and adjusted diluted net earnings per share to be in the range of $3.20 to $3.30.
Commenting on the acquisition, Mr. Morelli added, “We are excited to acquire industry leader Invenco and expand our software enabled workflow solutions and subscription business. Invenco’s disruptive edge computing technology roadmap and modular solutions offer extensibility across other retailing verticals and accelerates our digital strategy, better positioning us to serve our customers’ growing demand for digitally agile software systems.”
Invenco was founded in 2009 as a self-service payment solution provider with a range of products including outdoor payment terminals, electronic payment servers and cloud solutions. As one of the leading suppliers of retailing and payment solutions to the convenience retail industry worldwide, Invenco’s innovative, modern, and highly secure solutions are well positioned to enable retailers to solve for dynamic needs and innovate for different energy futures, digital payments, and consumer services. Headquartered in Auckland, New Zealand, Invenco is privately held and employs approximately 300 employees globally, including 130 software engineers.
Invenco’s expected 2022 revenue of $80 million with mid-40% gross margins enhances Vontier’s growth and recurring revenue profile. The purchase price for the acquisition is $80 million plus additional, contingent consideration based on performance and the transaction is expected to close in the third quarter of 2022. The acquisition will be subject to customary closing conditions, and will be funded with available liquidity. Upon closing, Invenco will be integrated within Gilbarco Veeder-Root (GVR), leveraging GVR’s channel to market.
Vontier will discuss results and outlook during its quarterly investor conference call today starting at 8:00 a.m. ET. The call and an accompanying slide presentation will be webcast on the “Investors” section of Vontier’s website, www.vontier.com, under “Events & Presentations.” A replay of the webcast will be available at the same location shortly after the conclusion of the presentation.
The conference call can be accessed by dialing 866-831-8616 within the U.S. or by dialing 203-518-9883 outside the U.S. a few minutes before 8:00 a.m. ET and notifying the operator that you are dialing in for Vontier’s earnings conference call (Conference ID: 3022156 Passcode: 20314). A replay of the conference call will be available shortly after the conclusion of the call. Once available, you can access the conference call replay by dialing 888-225-1656 within the U.S. or 402-220-4975 outside the U.S. (Conference ID: 3022156) or visit the “Investors” section of the website under “Events & Presentations.”
ABOUT VONTIER
Vontier is a global industrial technology company at the forefront of solving next-gen mobility and transportation challenges. Guided by the Vontier Business System and an unwavering commitment to our customers, Vontier delivers smart, sustainable solutions to create a better world.
