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Zebra Technologies to Acquire Elo Touch Solutions for $1.3 Billion, Raises Full-Year Forecasts

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Barcode scanner and handheld device maker Zebra Technologies (ZBRA.O) announced a $1.3 billion all-cash deal to acquire Elo Touch Solutions, a touchscreen system maker, as it expands its retail-focused offerings. The acquisition follows strong second-quarter results driven by rising demand for Zebra’s devices and a recent acquisition of 3D imaging firm Photoneo.

Zebra’s shares jumped nearly 7% in premarket trading following the announcement and an upward revision of its annual revenue and profit guidance. The company benefits from increased digitization in retail and logistics, with its products aiding inventory management, warehouse operations, and shipment tracking.

The Elo Touch acquisition, expected to close in 2025, will add self-service kiosks, payment terminals, and touchscreen systems to Zebra’s portfolio, enabling frontline workers to better serve customers. CEO Bill Burns described the deal as a “next step” to accelerate frontline connectivity and estimated it expands Zebra’s addressable market by $8 billion.

Elo Touch, serving clients including JCPenney, has annual sales near $400 million. The acquisition is expected to be immediately accretive to earnings and to generate around $25 million in additional core profit three years after closing.

Zebra’s Q2 performance also benefited from lower tariffs than anticipated, with supply chain diversification across China, Vietnam, Malaysia, and Mexico helping manage costs. In April, Zebra raised prices on most North American products to offset tariff-related pressures.

For the full year, Zebra now expects sales growth between 5% and 7%, up from a prior range of 3% to 7%. Adjusted earnings per share guidance has been raised to $15.25–$15.75 from $13.75–$14.75.

In Q2, sales rose 6.2% to $1.29 billion, meeting estimates, while adjusted EPS of $3.61 exceeded expectations of $3.32.

Chinese Bitcoin Mining Hardware Giants Establish U.S. Production to Circumvent Tariffs

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The world’s top three manufacturers of bitcoin mining machines — Bitmain, Canaan, and MicroBT — are setting up production bases in the United States as part of a strategic response to President Donald Trump’s tariff policies. These firms, all originally Chinese, dominate over 90% of the global market for mining rigs, specialized computers essential for bitcoin mining.

The move aims to avoid hefty U.S. tariffs imposed amid escalating trade tensions, while potentially easing geopolitical concerns related to China’s influence over critical tech infrastructure. Guang Yang, CTO of Conflux Network, highlighted that the trade war is triggering deep structural changes in bitcoin’s supply chain, pushing U.S. companies toward sourcing hardware from politically acceptable locations.

Bitmain, the largest by sales, began U.S. production in December 2023, shortly after Trump’s re-election. Canaan started trial U.S. production after Trump announced new tariffs on April 2, seeking to shield itself from duties. MicroBT is actively pursuing localization in the U.S. to reduce tariff impacts.

This sector, valued by analysts at around $12 billion by 2028, includes upstream mining rig production, energy-heavy bitcoin mining, IT infrastructure, and trading platforms. U.S. rival Auradine, backed by leading miner MARA Holdings, is lobbying to restrict Chinese equipment imports to boost competition in hardware.

Despite 30% of global bitcoin mining taking place in North America, more than 90% of mining hardware comes from China, creating an imbalance and raising security concerns. Auradine’s Sanjay Gupta warned of risks linked to “hundreds of thousands” of Chinese rigs connected to the U.S. grid. However, Canaan’s Leo Wang dismissed security threats from mining rigs, stating they are ineffective outside bitcoin mining, though he warned Chinese manufacturers could face collateral impacts from U.S. tech restrictions.

Bitmain’s AI arm, Sophgo, was recently blacklisted by the U.S. government over security concerns, illustrating rising scrutiny of Chinese tech firms.

Historically, China dominated bitcoin from hardware through mining and trading until 2021, when Beijing banned cryptocurrency activities citing financial risks. Miners and exchanges moved abroad, but Chinese manufacturers maintained dominance in hardware, leveraging their early lead in designing mining-specific chips.

Canaan has relocated its headquarters to Singapore and established a U.S. pilot production line, with the U.S. contributing 40% of its revenue last year. Wang emphasized the goal of reducing costs amid tariffs by exploring all alternatives.

The U.S. currently imposes a baseline 10% tariff on many imports and an additional 20% on Chinese goods, with potential further tariffs on Southeast Asian countries hosting Chinese assembly plants.

While Trump promotes crypto-friendly policies and has positioned himself as a “crypto president,” China’s dominance in bitcoin infrastructure remains a potential choke point. Legal expert John Deaton warned that China’s control could disrupt bitcoin network stability and impact U.S. users if exports are restricted.

Top U.S.-based miners, including MARA, Core Scientific, CleanSpark, and Riot Platforms, face risks from heavy reliance on Chinese hardware. Economist Ryan Yonk noted this dependence is “potentially problematic” despite Chinese rig makers’ efforts to establish a U.S. presence.

Kadan Stadlemann, CTO at Komodo, said U.S. miners will still buy rigs from China in the short term and face higher costs, but the tariff-driven shift aims to reshape the industry’s supply chain long term.

Trump to Extend TikTok Sale Deadline for Third Time, White House Confirms

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U.S. President Donald Trump will extend the June 19 deadline for ByteDance, TikTok’s China-based parent company, to divest the app’s U.S. assets by 90 days, according to the White House. This marks the third extension of the deadline imposed by a law requiring either a sale or shutdown of TikTok in the United States unless significant progress toward divestment was made.

White House Press Secretary Karoline Leavitt said on Tuesday that Trump plans to sign another executive order this week to keep TikTok operational, pushing the deadline to mid-September. She emphasized the administration’s intention to ensure the sale is completed so Americans can continue using TikTok with confidence in their data’s security.

Trump previously extended the deadline twice: initially delaying enforcement from January to early April, then again to June 19. He cited TikTok’s popularity among young voters in the 2024 election as a reason for the extensions. On Tuesday, Trump told reporters aboard Air Force One that he expected to extend the deadline again and expressed optimism that Chinese President Xi Jinping would approve the deal.

The law mandated TikTok’s shutdown by January 19 unless ByteDance completed the sale of its U.S. operations or demonstrated significant progress. Negotiations have aimed to spin off TikTok’s U.S. operations into a new, majority U.S.-owned company, but progress stalled after China signaled it would not approve the deal, especially following Trump’s announcements of steep tariffs on Chinese goods.

Democratic senators have criticized the extensions, questioning Trump’s legal authority to continue delaying enforcement and expressing concerns that the proposed deal would not satisfy legal requirements.