Delta Electronics to acquire Canadian software firm, grow industrial automation business
By Gloria Cho
TAIPEI, NNA— Taiwanese electronics and power management system maker Delta Electronics Inc. plans to acquire Canadian software firm Trihedral Engineering Ltd. for C$45 million ($33 million) and boost sales of its industrial automation for smart manufacturing.
The buyout will help it expand industrial automation by making the most of both parties’ hardware and software, the two firms said in a joint statement Saturday. Delta President and COO Simon Chang pointed to a “synergy of the two companies.”
“With the continued proliferation of the Internet of Things, customers expect digital oversight and management of their operations. The collecting, monitoring and analyzing of data are critical to Delta’s two major growth engines of the future - smart manufacturing and smart cities,” Chang said in the statement.
Delta Electronics (Netherlands) B.V., a wholly-owned subsidiary of Delta, will acquire 100 percent stake in the Canadian firm, according to the statement.
Trihedral has designed and sold supervisor control and data acquisition software for more than 30 years. The software sells to clients in the power, water treatment and oil and gas industries, a legacy that made it ideal for takeover by the Taiwanese company, a Delta official told NNA Monday.
Delta has made several takeovers to boost its automation businesses over the past few years, the official said. “Acquiring mature enterprises with scale and expertise helps to mend our weakness and (makes it) needless to start from the beginning,” the official said.
Trihedral is “actively exploring” markets in Europe and China as well as other parts of Asia for the software, Trihedral president Glenn Wadden said in the statement. The company works now out of Canada, the United States and Britain.
Trihedral expects to use Delta’s global business strengths for selling software packages for the demands of cities seeking to automate more services via internet.
The automation sector logged sales of NT$8.5 billion ($281 million), 16 percent of total revenue in the quarter ending March 31. Power electronics accounted for 51 percent and infrastructure made up 33 percent, Delta’s financial statement showed.
The deal requires regulatory approval in Taiwan. Delta expects to win approval some time this year, the official said.