The acquisition of Novanta by ABB

: another step in the transformation of a global engineering giant

Abstract

This dissertation aims to determine whether or not the acquisition of Novanta is a beneficial next step for ABB in its ongoing transformative state. For this purpose, both companies will be valued separately as well as jointly upon a hypothetical acquisition to determine whether the value of Novanta to ABB outweighs the costs of an acquisition. In addition, a review of the current literature on the most important aspects of mergers and acquisitions is provided. Introductory chapters to the industrial automation and medical device industries as well as to ABB and Novanta individually shall provide an overview of the firms’ respective businesses and targeted sectors. The results of the analysis show that the proposed transaction could create value of USD 3.0 bn for ABB shareholders at a proposed transaction price of USD 220.21 per share.

Date of Award	4 Jul 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	António Borges de Assunção (Supervisor)