Advantech Targets In-vehicle Computing with DLoG Acquisition

By integrating both companies’ strengths, the Taiwan-based IPC supplier aims to become a global market leader in industrial in-vehicle computing.

Advantech Corp. (www.advantech.com) a Taiwan-based supplier of industrial personal computers (IPC) and automation, announced on March 10 its acquisition of DLoG GmbH (www.dlog.com), Munich, from Augusta Technologie AG (www.augusta-ag.de), Munich,  for €12.85 million ($17.5 million).

DLoG GmbH was founded in 1985, and is said the be number three supplier of rugged industrial computers in Europe, with a 19.3 percent market share. DLoG revenues totaled of €18.5 million ($25.2 million) in 2008, falling to €13 million ($17.7 million) in 2009 during the world economic crises. But strength in first quarter 2010 bookings and billings put the company on track for growth again this year, Advantech said.

Rebranding

In announcing the deal, Advantech stressed DLoG’s strength in the in-vehicle computing business. Through this acquisition, Advantech will integrate both parties’ strengths to become a global market leader in industrial in-vehicle computing, the company said. In addition to DLoG’s focus in Europe, both parties will jointly develop the Asia and U.S. markets. After acquisition, the company will be rebranded to Advantech-DLoG to reflect the synergy of the integration. In the future, Advantech-DLoG will focus on four in-vehicle computing markets: Intralogistic, Heavy Duty, Stationary Applications, and Fleet Management.

With about 75 employees, DLoG has design, research and development, sales and marketing departments. “DLoG boasts sophisticated German craftsmanship, design quality and distinguished brand architecture in the European market. I highly appreciate the achievement of the current DLoG management team in the in-vehicle computing business,” said Advantech Chief Executive Officer (CEO) K.C. Liu. “After the acquisition, the current DLoG CEO, Hans-Peter Nüdling will continue to lead Advantech-DLoG.”

Nüdling’s background includes multi-cultural, technological and operational management experience in the United States and Southeast Asia. Prior to joining DLoG in 2007, he held various management positions within the electrical engineering sector, at companies including ATI, AMD and Infineon.

Synergy

“Both Advantech and DLoG are experts in industrial in-vehicle computing,” Nüdling said. “We are confident in developing more complete product lines as well as raising higher quality and better services practice. This acquisition will also help DLoG expand from its current Intralogistics and Heavy Duty segments into Advantech’s strength in Stationary applications and Fleet Management.

“In addition,” Nüdling continued, “the plan is to synergize sales, R & D and manufacturing capabilities of both parties. Advantech-DLoG will have ample capability to offer ODM (original design manufacturer) services to key customers. The sales network of Advantech will enable Advantech-DLoG to aggressively penetrate markets in U.S. and Asia. Advantech-DLoG will continue to stay in the forefront of industrial in-vehicle computing markets.”

Liu added that “the continuous satisfaction of DLoG’s current customers is the very first priority for Advantech-DLoG. To ensure this satisfaction, we will carefully maintain the stability of DLoG’s supply chain, eco partners and customer service model after the acquisition.”

Advantech Corp.
www.advantech.com

Augusta Technologie AG
www.augusta-ag.de

DLoG GmbH
www.dlog.com

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