Industrial computer company acquires system integrator

Mergers and acquisitions: Axiomtek USA expands North American operations with acquisition of the Suntron Embedded Computing Solutions (ECS) business unit.

12/21/2012


Axiomtek, a global provider of industrial computers, announced that its North American subsidiary, Axiomtek USA, has signed a definitive agreement to acquire the Methuen, Mass.-based Embedded Computing Solutions (ECS) business unit of Suntron Corp. ECS provides modified commercial-off-the-shelf (COTS) based end-to-end outsourcing services, such as embedded designs, systems integration, and extended life-cycle management. Terms of the agreement were not disclosed.

Axiomtek, with more than 700 employees worldwide and operations in five countries, has expanded service to the embedded systems marketplace with the acquisition of ECS, according to a Dec. 21 statement from Axiomtek USA, based in City of Industry, Calif. Under the agreement, ECS operations would be renamed Axiomtek Systems and remain in its current ISO9001 certified Methuen facility. Current Axiomtek product offerings include single-board computers, industrial computing systems and platforms, digital signage, panel computers, industrial connectivity (switches and protocol converters), and related support.

“Attempting to be a standard product company in a world that is demanding non-standard solutions can present a tremendous challenge to any manufacturer,” stated YT Yang, Axiomtek CEO and president. “With the added experience and skill set of ECS,” Yang said, “we are now poised to provide our customers with a portfolio of robust industrial computing products along with outsourcing services anchored by operational excellence. It is a perfect match.”

ECS, established in the early nineties, has provided some of the industry’s first integration services targeting the original equipment manufacturer (OEM), designing complex products based around COTS building blocks, the Axiomtek statement said. Since then, ECS has developed into a “full fledged value-added integrator with a suite of uncompromising services,” according to Axiomtek.

“Over the recent years, the industrial computer industry has done a nice job producing standards based systems for the embedded developer,” said Dave Starrett, VP of sales for Axiomtek USA. “However, the final piece to the ultimate solution is being able to offer the intangible services that truly enable the customer to focus on their core competency. Now we have it.”

Kevin Tiner, ECS director of operations, said, “Our ECS team is passionate about exceeding the customer’s expectation when it comes to the breadth of our outsourcing services. Axiomtek has been a supplier to ECS for over ten years. We know their products, their capabilities, and their people. We look forward to taking advantage of the synergy that this partnership has created.”

Lincoln International represented Suntron Corp. in the sale of the ECS business unit. Murphy Teng is corporate controller, Axiomtek USA.

Axiomtek was founded in 1990 in Taipei, Taiwan, expanding with subsidiary operations in the United States, Germany, and China. Axiomtek characterizes its product portfolios as one of the broadest in the industry, concentrating on designs that withstand challenging environmental conditions. Industrial computer product attributes include fanless and wide temperature operations, small form factors, and a five-to-seven-year product life cycle. The company is a member of the Intel ISA partner program. It also is a technology partner with several other major silicon suppliers including AMD. Axiomtek is traded on the Taiwan Securities Market (3088;AXIOMTEK). Axiomtek USA was established in 1992 and is a wholly owned subsidiary of Axiomtek.

The Suntron Corp. ECS business was created more than 20 years ago to supplement COTS products with services targeted at OEMs in mission critical, 24 x 7 industries. The business is said to excel in system design, OS builds, I/O implementation, turnkey systems integration, supply chain logistics, and life cycle management.

ECS’s parent, Suntron Corp., delivers electronic manufacturing services to support complex products within the aerospace, defense, industrial, medical, network and telecommunications, and semiconductor capital equipment market segments. Suntron capabilities include printed circuit board manufacturing and large scale assemblies, which help customers improve time to market, enhance manufacturing flexibility, reduce inventory liability, remove redundant and non-value added processes, and simplify the supply chain.

Lincoln International specializes in merger and acquisition advisory services, debt advisory services, private capital raising, and restructuring advice on mid-market transactions. Lincoln International also provides fairness opinions, valuations, and pension advisory services on a wide range of transaction sizes. With 13 offices in the Americas, Asia and Europe, Lincoln International has strong local knowledge and contacts in key global economies. The firm provides clients with senior-level attention, in-depth industry expertise and integrated resources. By being focused and independent, Lincoln International serves its clients without conflicts of interest.

www.axiomtek.com

www.suntroncorp.com/embedded-computing-solutions.html

www.suntroncorp.com

www.lincolninternational.com

- Edited by Mark T. Hoske, content manager, CFE Media, Control Engineering and Plant Engineering, mhoske@cfemedia.com.



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