Delta Electronics Floats Offer to Acquire Stake in Vivotek

Delta Electronics says Vivotek’s video surveillance expertise would help strengthen its portfolio of building automation solutions.

TAIPEI, Taiwan — Delta Electronics, a global manufacturer of power and thermal management solutions, said its board of directors has approved a proposal for a cash tender offer to acquire approximately 35% to 55% of the outstanding common shares of Vivotek.

In an Aug. 8 press release, the company said the tender offer would begin Aug. 9 and end on Sept. 26. The amount of the offer was not disclosed.

“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,” Delta Chairman Yancey Hai stated.

Hai said security and video surveillance are critical aspects in today’s building automation arena to “actually support the creation of smart cities.”

Vivotek has been developing video surveillance solutions for more than 17 years, including IoT-based smart imaging analytics. Upon completion of the tender offer, Hai said the company expects “to produce substantial synergies by integrating the technologies and market development platforms of both companies.”

For all the latest M&A news, go here.

Leveraging Delta’s extensive and versatile resources is expected to be highly beneficial to Vivotek’s overall business and its underlying shareholders’ equity, the press release stated. From a product perspective, both companies could jointly develop competitive solutions capable of satisfying a larger spectrum of applications, according to Delta.

In terms of business development, Vivotek could leverage Delta’s growing global presence and market channels to boost its performance. Also, from a production standpoint, Vivotek could benefit from Delta’s automated manufacturing knowledge and significant procurement bargaining power.

In May, Delta reorganized its corporate structure into three new business categories: Power Electronics, Automation and Infrastructure. In 2016, the company expanded its capabilities in building automation by acquiring Loytec and Delta Controls.

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