2013-01-30 18:13:38 -
HMS, the world-leading supplier of industrial communication technology, has
acquired IXXAT GmbH - a leading supplier of communication technology for
industrial automation, machine manufacturing and the automotive industry. The
purchase price is approximately 32 million Euro cash and debt free.
IXXAT was founded in 1987 and is today headquartered in Weingarten, Germany.
With subsidiaries in France and the U.S., IXXAT offers hi-tech communication
products and services for industrial applications. IXXAT employs 85 people and
has a turnover of 14 million Euro.
"IXXAT's hi-tech products and services are great supplements to HMS's
operations," says Staffan Dahlström, CEO at HMS Networks AB. "Their strong
position especially on the important German market will reinforce HMS's presence
on the world's leading market for industrial communication solutions. IXXAT is
world-leading when it comes to CAN-based communication technology
operate within business segments which will be important for HMS's future
The acquisition is to be carried out in January, 2013. The acquired business
will be consolidated into the HMS Group as of January 31, 2013. The financing of
the acquisition has been secured and the acquisition does not adhere to
conditions or clearances from any authority.
IXXAT GmbH offers software and hardware solutions for CAN, a number of
industrial Ethernet standards, IEEE 1588, FlexRay and LIN. They also offer
customized hardware components within embedded subsystems as well as complete
embedded system solutions for a broad range of industrial markets like
automation, medical, power generation and automotive..
With more than 25 years of experience, IXXAT is a well-renowned supplier of
products and services within embedded systems and data communication for
industrial automation and the automotive industry. The company also develops
technology platforms within safety solutions, according to IEX61508.
The company employs 85 people of which 50 are product development engineers.
IXXAT has subsidiaries in the U.S. and France and also sell their products via
distributors in 25 countries.
"We see great opportunities to further widen the market for our product offering
by getting access to HMS's well-established global sales channels," says
Christian Schlegel, Managing Director IXXAT GmbH. "HMS's hi-tech product
platforms will also be great assets for our ongoing development projects and for
IXXAT's strong position on the important German market means a wider customer
base and a more powerful German organization. The company's technology
platforms, based on the communication protocols CAN, Industrial Ethernet,
FlexRay and "Safety," are important additions to HMS's current product
With 50 new development engineers, HMS's development resources will be
strengthened both when it comes to headcount and experience . The acquisition
also gives HMS the opportunity to market products towards new segments such as
medical equipment and the automotive industry.
HMS's world-wide sales channels will give IXXAT access to a wider market. In
addition, HMS's experience within manufacturing and logistics will also provide
opportunities for improved efficiency and profitability.
In 2012, IXXAT had a turnover of 119 MSEK (EBITDA: 27 MSEK). Pro-forma earnings
for HMS+IXXAT 2012 would have been approximately 500 MSEK (EBITDA: 101 MSEK).
The acquisition of IXXAT is expected to have a positive effect on earnings per
share as of the acquisition date.
HMS's global sales channels will be used to market and sell IXXAT's wide product
portfolio. Through IXXAT's connections to companies which develop their own
communication solutions - the so-called "make market" - HMS will be given the
opportunity to offer their solutions within this market. The acquisition also
adds around 50 development engineers to HMS's R&D. The extended resources within
R&D are expected to increase flexibility which opens up opportunities to develop
customized solutions as well as standardized products. By coordinating
purchasing and logistics channels, it will be possible to leverage on the
acquisition even further.
The acquisition will initially bring minor integration benefits to the Group.
The costs for achieving these are estimated to be minor.
The company is required to publish this information according to the securities
market act. The information was distributed for publication on January 30, 2013
at 18.00 pm CET.
For more information, please contact:
Staffan Dahlström, CEO HMS, +46 709-17 29 01
Gunnar Högberg, CFO HMS, +46 709-17 29 95
HMS Networks AB (publ) is a world-leading supplier of communication technology
for industrial automation. Sales for the last twelve months totaled SEK 380
million. Over 90% of these sales were to customers located outside Sweden. All
product development and parts of the manufacturing are performed at the head
office in Halmstad. Sales offices are located in Tokyo, Beijing, Karlsruhe,
Chicago, Milan, Mulhouse, Pune, Coventry and Copenhagen. HMS has 265 employees
and produces network interface cards and Gateways to interconnect different
networks under the trademark Anybus® and products for remote management under
the trademark Netbiter®. HMS is listed on NASDAQ-OMX Nordic Exchange in
Stockholm in the category Small Cap, Information Technology.
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Source: HMS Networks AB via Thomson Reuters ONE