Back in May I posted a blog raising the issue of possible mergers and acquisition activity in the data acquisition solutions markets. Well it looks like my crystal ball was working pretty well that day as Dynamic Signals LLC has added to its small/mid-size, but growing, portfolio of brand names (including Gage, KineticSystems, Preston Scientific and Cyber Systems) by acquiring Signatec, Inc. at the end of August of this year. Dynamic Signals is a provider of high performance data acquisition and control solutions and its various brands also provide instruments and modules for PC-based test and measurement systems.
The two companies will be covered in VDC's 2011 Data Acquisition Solutions Technology Opportunity Analysis comprehensive regional supply-side analysis reports which will be published later in November as they both provide external chassis & modules such as data loggers, PC front ends and customized standalone systems as well as plug-in analog I/O boards across multiple platforms such as PCI Express/PCI, PCI, PXI, VXI and CompactPCI. These companies' solutions serve higher performance applications found in military and aerospace, communications, computers, automotive, research and educations. Applications served include lasers/LIDAR, spectroscopy, ATE, manufacturing test, testing of nuclear reactor tubing, etc.
In a recent WebCast I discussed two basic strategies that suppliers looking to succeed in the data acquisition solutions markets should consider - take actions needed to get bigger or stay small and remain focused on serving niche segments in which the firm has best in class application level expertise. Dynamics Signals seems to be achieving both goals with its strategy of acquiring companies to gain economies of scale while also remaining focused on serving segments of the market which require higher performance data acquisition solutions.
I am keenly keeping watch to see what companies may become the next PAC Man merger that takes place as those savvier suppliers further capitalize upon the "clustered" fragmentation that comprises the $1.2 billion data acquisition solutions opportunity.