Automation mergers, acquisitions, capital markets analysis: January 2023
The Bundy Group reported 10 automation transactions in the month of January. 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.
With 2023 now in full swing, the automation solutions segment is well positioned for another robust year in terms of M&A and capital placement activity. The below transactions are continued evidence of the strong evidence that strategic buyers and financial sponsors have in the automation sector. In 2022, Bundy Group reported over 80 transactions through our monthly piece in Control Engineering magazine. While existing macroeconomic headwinds present some challenges, the Bundy Group team continues to be very optimistic about the growth of the automation market and the M&A and capital activity tied to the segment.
Some interesting points to note as we begin 2023:
Avanceon client transaction: Bundy Group was proud to have advised Avanceon, a full-service industrial automation and information systems integrator, in a sale to an international conglomerate. This is one of the first announced automation transactions of 2023. VINCI will expand its U.S.-based industrial portfolio with the acquisition, and Avanceon and will join under the Actemium network, the VINCI Energies brand dedicated to the industry market. A link to the transaction announcement can be found at the following:
An “In Demand” Subsegment: Bundy Group is currently working with several clients in the automated material handling services sector, and we anticipate several closed deal announcements in 2023. Our clients, which offer solutions such as systems integration, robotics and conveyor solutions, have robust pipelines and demonstrated performance. In addition, these companies are also focused on such growth markets as fulfillment centers and electric vehicle production. The demand from strategic and financial sponsor buyers for these companies is incredibly strong, and we anticipate no shortage of offers in our competitive processes for these organizations that we are representing in business sales.
The 2023 A3 Business Forum – An Atmosphere of Energy: I recently attended the Association for Advance Automation (A3) Business Forum. The conference certainly delivered the energy one would expect for such an exciting and innovative industry. I had a lot of great meetings with key players in the automation sector, and I heard positive industry comments from every person I met. Automation subsegments of particular interest include robotics, machine vision and automated material handling. As further evidence of the bright future for the industry, Alan Beaulieu, President of ITR Economics, stated, “Automation will be needed for the next 20 years to counterbalance anticipated labor shortages.” I will be providing more observations from the A3 Business Forum in next month’s Control Engineering article
Upcoming “Exit at the Top” Workshop: For business owners and senior executives, Bundy Group is offering a workshop entitled “Investing in Your Most Important Asset – Your Company.” We are providing this one-day educational event in partnership with Clayton & McKervey, Capital Valuation Group and the Control System Integrators Association. We will cover a range of topics, including business valuation, how to build your company’s value, the state of the M&A market and methodologies to “exit at the top” in a sale. The event will be May 16th in New Orleans. Additional details and a registration link can be found here.
The Bundy Group team is excited to continue our relationship with Control Engineering magazine in 2023 and providing its readers with updates on market trends and latest transactions. We anticipate a healthy number of business sale and capital raise transactions that will be announced in the coming months. Keep an eye out on future Control Engineering publications.
January 2023 automation transactions
Barcoding, Inc., the leader in supply chain efficiency, accuracy, and connectivity, announced its acquisition of FRED Automation, Inc., an automated guided vehicle (AGV) company. This acquisition represents continued expansion and investment in industrial automation for Barcoding, Inc. Learn more.
GrayMatter is excited to announce the expansion of its Industrial Intelligence Platform of premiere industrial technology solution providers with the strategic merger of Columbus, Ohio-based Phantom Technical Services, Inc. Learn more.
Triad Technologies, LLC completed the acquisition of Industrial Service Products, LLC on December 30, 2022. ISP is a value-added distributor of custom fabricated hose, valves, fittings and other related products for the safe, efficient transfer of liquid and dry goods to a wide array of industrial customers. Learn more.
VINCI Energies is acquiring the Norwegian company Otera AS and its subsidiaries from Roadworks AS and Å Energi AS. This transaction will enable VINCI Energies to strengthen and expand its offer and expertise in Norway through its Omexom brand, with ownership of one of the leading companies in the sector. Learn more.
Cloud-based data warehouse company Snowflake has agreed to acquire artificial intelligence-based time series forecasting platform provider Myst AI. Learn more.
Lundquist Consulting was acquired by Stellex Capital Management for an undisclosed amount. Developer of bankruptcy process automation software intended for the mortgage, auto, bankcard, enterprise financial, fintech, cable/telecom and debt-buying industries. Learn more.
Supply Chain Equity Partners (“SCEP”) announced the sale of its portfolio company Air Hydro Power (“AHP”) to Houchens Industries, a diversified holding company. SCEP was a minority investor in AHP. AHP’s management team had majority control. Learn more.
Photonis, a global leader of highly differentiated technology for defence and industrial markets, held by HLD since 2021, has signed a definitive agreement to acquire Xenics, a specialist developer and manufacturer of leading-edge infrared solutions. Learn more.
Carlson Private Capital Partners (“CPC”),has made a significant investment in founder-owned Thermo Systems based in East Windsor, NJ. Thermo Systems is a global automation control systems integrator for applications across the data center, life sciences and district energy end markets. Learn more.
Thomson Reuters Corporation (“Thomson Reuters”) (NYSE / TSX: TRI) has signed a definitive agreement to acquire SurePrep, LLC (“SurePrep”), a US-based leader in 1040 tax automation software and services, for $500 million in cash (the “Proposed Transaction”). 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.