Veralto has acquired the holding company of TraceGains. This acquisition strategically expands Veralto’s PQI segment by integrating TraceGains’ food safety software with Esko’s digital workflow solutions for packaging and label design. The deal is a pure "Software-as-a-Service" play, as TraceGains generates over 95% of its sales from recurring subscriptions. Veralto plans to leverage its global sales channel and the Esko customer base to accelerate TraceGains' market presence. Financially, the deal aligns with Veralto’s disciplined capital allocation, with an expected double-digit return on invested capital by year 6. The transaction was funded entirely with cash on hand, highlighting Veralto's strong balance sheet following its recent spin-off.

TraceGains is a leading provider of cloud-based software solutions (SaaS) dedicated to the food and beverage industry. Its business model revolves around a "networked ecosystem" that connects over 80,000 supply chain locations, providing digital visibility into more than 550,000 ingredients. The platform enables consumer brands to automate digital workflows for compliance, supplier quality monitoring, and traceability. By digitizing critical workflows across new product development and packaging, TraceGains helps brands meet stringent global regulations while reducing time-to-market. The company operates with a high-margin, recurring revenue model, serving as a mission-critical transparency tool for global food stakeholders for over 15 years.