Delta offers to acquire a stake in VIVOTEK

Delta offers to acquire a stake in VIVOTEK
Delta Electronics, a leader in power and thermal management solutions, announced August 8 its intention to acquire a stake in IP video manufacturer VIVOTEK, setting the stage for an acquisition that would help broaden Delta’s building automation offerings.
 
On its website, Delta announced its board of directors has approved a proposal for a cash tender offer to acquire approximately 35 to 55 percent of the outstanding common shares of VIVOTEK with an offer price of US$3.24 (NT$98) per share. The offer, which is expected to begin on August 9 and end on September 26, will be completed when final effective tendered shares reach the 35 percent minimum, according to the website. VIVOTEK closed at $2.95 (NT$89) on August 8.
 
The deal came after a period of relative quietness in security M&A block. The last similar deal was the merger between Johnson Controls and Tyco as the former sought to acquire a security component to strengthen its building management offerings.
 
Building automation and security had been working in silos for years until the Internet of Things took hold. With IoT, building automation systems and security are both becoming more network-centric, allowing easier integration between the two, paving the way to building automation companies to sell complete solutions to different vertical markets.
 
Indeed video can play an important role in different aspects of building automation. Video analytics for example can examine how many people are visiting a building and trigger various environmental adjustments. ALPR, meanwhile, can tell whether a vehicle belongs to a certain building and activates elevator, lights and HVAC accordingly.
 
“Our M&A strategy is an essential pillar of Delta’s long-term plan to sharpen its competitiveness under a rapidly evolving marketplace. We, therefore, remain committed to enhancing the value-added capabilities of our building automation solutions,” said Delta chairman Yancey Hai in a statement.
 
VIVOTEK, ranking No. 19 on a&s’s Security 50 in 2016, has a range of IP video surveillance products from cameras, NVRs to analytics software. The company has set its goal to become the “eye of IoT” and is advancing its video surveillance technologies and strengthening its partnership with global channel players to achieve that goal.
 
Perhaps it’s this vision that made Delta determine VIVOTEK is a good fit. “Security and video surveillance are such critical aspects in this field as they go way beyond buildings and actually support the creation of smart cities. VIVOTEK has been developing state-of-the-art video surveillance solutions for more than 17 years, including IoT-based smart imaging analytics. Upon completion of this tender offer, we expect to produce substantial synergies by integrating the technologies and market development platforms of both companies,” Hai said.


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