Automation mergers, acquisitions, capital markets analysis: December 2022
The Bundy Group reported 13 automation transactions in the month of December. Analysis on the acquisitions and reports are highlighted below.
Bundy Group, an investment bank and advisory firm, provides an update on mergers & acquisitions and capital placement activity in the automation market.
To finish out 2022, I wanted to highlight the latest mergers & acquisitions (M&A) and capital placement transactions for the automation segment (see below). From the beginning of 2022 to today, automation solutions-driven organizations were highly sought after by both strategic buyers and financial sponsors (i.e. investment groups; private equity groups; family offices). This robust activity, which occurred during a challenging macroeconomic period, further demonstrates the resilience and energy of the automation market.
With 2023 soon to start, I wanted to offer some observations and predictions for the automation market:
Automation transactions will continue: As supported by Bundy Group’s current and deep base of automation solutions clients, which we are representing in business sales and capital raises, our team is confident that 2023 will be another strong year for industry transaction activity. Keep an eye out on our monthly update in Control Engineering magazine for more announcements!
IT & OT convergence + cybersecurity: The automation solutions industry and its clients will maintain a focus on optimizing the marriage of information technology and operational technology. In addition, implementing cybersecurity offerings will be critical to protecting data, facilities, and organizations.
Macroeconomic challenges – No light at the end of the tunnel: As we head into the new year, owners and executives continue to face such issues as inflation, interest rates and supply chain issues. Furthermore, automation organizations see no easy shortcut to finding desperately needed technical, engineering and management talent.
Upcoming educational workshop on mergers and acquisitions: In 2023, Bundy Group will be offering at least one educational workshop, and possibly more, to owners and executives entitled “Building Value & Realizing Value.” This one-day workshop that will be comprehensive and answer questions owners and executives frequently have on how to prepare for a sale and realize maximum value. Bundy Group will provide further details in Control Engineering Magazine in subsequent publications. Please email email@example.com if you want to receive more information or announcements on the specifics regarding this workshop.
While the above observations are forecasts and not fact, the automation industry fundamentals are strong, and I remain as optimistic as ever regarding this segment. Automation industries can retain and realize attractive valuations, especially when buyers and financial sponsors are pushed to do so in the form of a competitive process. Bundy Group is excited to continue to provide Control Engineering readers with M&A and capital raise market updates for next year.
December 2022 automation transactions
Synoptek, a leading global business and technology consulting firm, has acquired Optistar Technology Consultants. Optistar is the technology services business division of The Vertex Companies, LLC. The acquisition will be instrumental in expanding Synoptek’s footprint and advancing its capabilities. Learn more.
Epiroc, a leading productivity and sustainability partner for the mining and infrastructure industries, has completed the acquisition of Remote Control Technologies Pty Ltd, an Australian company that provides automation and remote-control solutions for mining customers around the world. Learn more.
Carenet Health, a leading provider of 24/7 and on-demand patient engagement and automation solutions, acquired Stericycle Communication Solutions, an industry leader in patient engagement technology and solutions and a service of Stericycle, Inc. (Nasdaq: SRCL), as part of its strategic vision to create a cohesive patient experience and provide better healthcare for all. Learn more.
Lincoln Electric Holdings, Inc. (Nasdaq: LECO) has signed a definitive agreement to acquire Fori Automation, Inc. Fori Automation was founded in 1984 and is a leading manufacturer of complex, multi-armed automated welding systems. Learn more.
ProMach acquired Ferlo, a manufacturer of automated product handling systems, on Nov. 30. The acquisition will help expand ProMach’s international presence and strengthen its capacity and supply chain partnerships. Learn more.
Zetwerk Manufacturing, the global source of manufacturing across industrial and consumer products, has acquired Unimacts, a leading manufacturing services company operating within various industries including industrial products, material handling, and renewable energy segments. Learn more.
Bentley Systems, Incorporated (Nasdaq: BSY), the infrastructure engineering software company, Cohesive Group digital integrator business has acquired Vetasi, a leading international consultancy specializing in enterprise asset management (EAM) solutions, with a strong focus on IBM Maximo. Learn more.
Tempo Automation, Inc., a leading software-accelerated electronics manufacturer, completed its business combination with ACE Convergence Acquisition Corp. (“ACE”) (Nasdaq: ACEV), a special purpose acquisition company traded on Nasdaq. Learn more.
SMA Technologies (“SMA”), a leading provider of automation solutions for financial services, announced the acquisition of VisualCron, an automation, integration and task scheduling tool for Windows environments. Learn more.
Open Systems, a leading provider of next-gen managed detection and response (MDR) services and winner of the 2022 Microsoft Security MSSP Partner of the Year award, acquired Tiberium, a U.K.-based provider of highly automated managed security services based on Microsoft security solutions. Learn more.
Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, announced the strategic acquisition of InTouch Automation, a supplier of Industry 4.0 technologies and complex automated testing equipment critical in the production of automotive seats. Learn more.
DroneDeploy has acquired Rocos, a New Zealand-based robotics software company. The acquisition will enable DroneDeploy customers in construction, energy, agriculture, and more to deploy and orchestrate both aerial and ground robots on their job sites. Learn more.
Two autonomous mobile robot (AMR) vendors have merged into a single unit, saying that the combination of Chelmsford, Massachusetts-based AutoGuide Mobile Robots and the Danish industrial automation firm Mobile Industrial Robots ApS (MiR) will expand both firms’ product portfolios and simplify customer automation projects. Learn more.
Bundy Group is a boutique investment bank that specializes in representing controls and automation, Internet of Things, and cybersecurity companies in business sales, capital raises, and acquisitions. Over the past 33 years, Bundy Group has advised and closed on over 250 transactions, which includes numerous automation-related transactions. You can learn more at www.bundygroup.com or by contacting Clint Bundy.