February 8, 2011 - Beijer Electronics has signed an agreement to acquire a majority of the Taiwanese technology and industrial data communications company Korenix Technology Co. Ltd. Together with Westermo, a world-leading offering in the business area Industrial Data Communications (IDC) is formed. Earlier this year, Beijer Electronics acquired a minority stake in Korenix. At the same time Beijer Electronics´ subsidiary Westermo and Korenix initiated a strategic cooperation regarding product offer and market activities that has turned out very well.
From the beginning the intention was to acquire Korenix and that is now accomplished. Korenix is a fast growing company. Annual sales is estimated to about 60 million SEK this year, which is an increase of 57 percent compared with last year. Profitability is in line with the existing IDC business where the target is an EBIT of at least 12 percent. Korenix has about 70 employees and headquarters in Taipei, Taiwan, with several sales offices throughout China and distributors world-wide.
We expect continued strong growth from Korenix. "We see a tremendous potential in the industrial data communications market, where Beijer Electronics is determined to be a world leading actor. The combined Westermo and Korenix offer will be one of the strongest," says Fredrik Jönsson, President and CEO of Beijer Electronics. Westermo will be a world leading player in the industrial data communications market. The acquisition of Korenix is an important step in the implementation of this strategy.
Westermo will be able to expand the product range of industrial Ethernet products at a higher pace and widen the product offering to its distributors. The strong presence in Asia makes it possible to be an active player on the Asian market through well-established sales channels. Westermo provides a full range of industrial data communications solutions for demanding applications in the transport, water and energy markets among others. For more than 35 years Westermo has been at the forefront of technological development and often pushed the limits of what is technically possible. In order to provide the best possible support, we have local presence in more than 35 countries through our authorized distributors and own offices.
Since 2008 Westermo has been part of the Beijer Electronics Group, a fast growing technology company with extensive experience of industrial automation, developing and marketing competitive products and solutions with focus on the user. Westermo provides a full range of industrial data communications solutions for demanding applications in the transport, water and energy markets among others. For more than 35 years Westermo has been at the forefront of technological development and often pushed the limits of what is technically possible. In order to provide the best possible support, we have local presence in more than 35 countries through our authorized distributors and own offices.
Since 2008 Westermo has been part of the Beijer Electronics Group, a fast growing technology company with extensive experience of industrial automation, developing and marketing competitive products and solutions with focus on the user.
