Hot off the presses is news that Red Lion Controls, parent is Spectris PLC, acquired Sixnet LLC on October 6, 2011 for the reported price of $72 million. Sixnet will join Red Lion Controls (and N-TRON) as part of the Industrial Controls segment of Spectris PLC. Sixnet will be led by Red Lion Controls' President, Mike Granby.
Sixnet employs over 100 people and provides Red Lion Controls with industrial connectivity and automation solutions such as industrial network switches (compliments N-TRON's own network switch line), remote automation devices such as RTUs, industrial distributed remote I/O and wireless routers and modems. Sixnet’s cellular wireless portfolio for the machine-to-machine market represents a new area of business for Red Lion.
Most of Sixnet’s sales historically have been to the US domestic market, but the acquisition provides a good opportunity to expand Sixnet’s overseas sales using Red Lion's international channel networks, particularly in China. “The acquisition of Sixnet will enable Red Lion to provide a broader range of solutions to our customers, and expand both our global presence and our strategic business segments,” says Granby. “Sixnet’s solutions and 35 years of experience in the industrial space are a great addition to our team. Over time, we intend to share technologies within our solution portfolio which will allow us to bring even more value to our customers.”
VDC is covering both Sixnet and Red Lion Controls in its upcoming 2011 Data Acquisition Solutions Technology Opportunity Analysis supply-side research. The pros and cons of leveraging acquisitions as a growth strategy will be analyzed in the research.
VDC believes that the expansion strategy via acquisition taken by companies such as Spectris, Beijer, Belden and others may lead to increased consolidation as other suppliers realize the benefits of building and developing more complete product and service portfolios, something industrial automation customers are increasingly demanding from their suppliers.
Based on VDC's own research it is increasingly more evident that customers seek out suppliers with which they can develop meaningful partnerships and want to deal with suppliers that really understand their business requirements and which are committed to helping the customer's improve and develop their operational capacities.
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