At the 2025 EMVA Business Conference in Rome, John Cronley, Vice President of Corporate Development at Excelitas Technologies, offered a candid and comprehensive look into the strategic mechanics of acquisition-led growth in the photonics and vision technology sector. It was his first EMVA conference, but Cronley delivered his message with the authority of a seasoned M&A architect—backed by five years at Excelitas and a track record that spans Emerson Electric and American Industrial Partners.
His message was clear: acquisitions are a critical lever in Excelitas’ expansion strategy, but they are just one leg of a disciplined, multi-pronged growth model.
A Global Tech Platform Backed by Private Equity
Excelitas Technologies, a U.S.-based industrial technology group, is perhaps best known for its work in photonics, imaging, and optical systems. With a turnover of $1.2 billion and 22 manufacturing facilities worldwide, the company is active across sectors like healthcare, semiconductor equipment, advanced industrial automation, aerospace, and sensors. Approximately 30% of its business is in medical and life sciences, and another 30% in semiconductor tools.
Importantly, Excelitas is privately held and backed by AEA Investors. “We’ve grown organically,” Cronley said, “but also through more than a dozen acquisitions—including four during my time.” The company has even shed parts of its portfolio, recently divesting a significant portion of its defense business to Teledyne.
Acquisitions as a Strategic Growth Lever
Cronley emphasized that acquisitions are not Excelitas’ only path to value creation—they sit alongside organic growth and operational effectiveness. “We’re not a design house,” he noted. “We design, develop, and manufacture in-house, which differentiates us.”
Excelitas targets 15% compound annual growth, split between 5–6% organic expansion and 8–10% from acquisitions. Cronley was quick to note that growth is not just about numbers: “Some of the best deals are the ones we don’t do.”
Key to their M&A strategy is discipline. The company evaluates each opportunity with a structured approach, weighing both quantitative metrics (like margin profiles) and qualitative criteria such as cultural fit and management retention. “If the team isn’t staying, it’s a red flag,” he said. “We don’t buy businesses to shut them down—we buy them to grow.”
The Art of Integration
When asked whether acquired companies thrive or stagnate under Excelitas’ ownership, Cronley stressed nuance. “We don’t have a one-size-fits-all approach,” he explained. “Sometimes we integrate quickly to seize a market opportunity. Other times, we take a ‘look, listen, and learn’ approach.”
Waiting too long can jeopardize synergies; moving too fast can alienate key personnel. “It’s a bit of an art,” he admitted. “But our intention is always to accelerate growth.”
Identifying the Right Targets
One standout takeaway was Cronley’s framework for identifying acquisition targets using the “Profit from the Core” philosophy. Excelitas defines its “core” competencies—technologies, markets, and capabilities—and seeks to grow one logical step away from that core to minimize integration risk.
“The farther you get from your core, the greater the risk,” he cautioned. “We don’t want to make bets that stretch us into unfamiliar territory without a solid foundation.”
Technology, Teams, and Timing
What does an ideal target look like to Excelitas? According to Cronley: differentiated technology, strong and willing management, and global potential. “Margin is often a proxy for differentiation,” he said. And the ability to scale a regional business across Excelitas’ global footprint is seen as a significant value driver.
He also underscored the importance of market timing. “You can have the perfect target, but if the market’s overheated or valuations are unrealistic, it’s better to walk away.”
Process and Prudence
Ultimately, Cronley described Excelitas’ acquisition strategy as a blend of “science and art”—data-driven but dependent on intuition, alignment, and experience. The company’s disciplined sequencing, in-house diligence, and thoughtful integration approach serve as a model for others navigating growth through M&A.
As Excelitas gears up for a potential IPO in the next 12 to 24 months, Cronley’s presentation offered a rare glimpse into the playbook of a major photonics consolidator—not just how deals are done, but why they succeed or fail.
“It’s not about buying more of the same,” he concluded. “It’s about building something greater—together.”
