Jul 12, 2006Extending its reach into the automotive market and new geographic areas, Austrian automatic-identification systems manufacturer Identec Solutions has acquired Baumer Ident, a German provider of industrial RFID-based tracking and tracing solutions. No value has been attributed to the deal, which combines the two privately held companies.
According to Identec, the acquisition will help it expand its presence in Japan, Korea and other Asian markets. Baumer has already established operations in Korea and Japan, and counts automotive manufacturers among its customers.
"The two businesses are quite complementary," says Gerhard Schedler, president and CEO at Identec. "Baumer specializes in systems for tracking vehicles on the production line through paint ovens and other harsh environments. After that, when the wheels are on the vehicle, is when our systems are used."
Baumer provides passive and active RFID systems operating in the 2.4 GHz, 125 kHz and UHF (868 MHz in Europe, 915 MHz in the United States) frequency bands. Its products are used primarily on automotive production lines, in the automotive sector (about 80 percent of the company's revenues come from that sector). Identec supplies active RFID systems that operate at 868 MHz in Europe and 915 MHz in the United States. Its systems are used for work-in-progress (WIP), manufacturing, vehicle tracking and container-management applications, as well as some custom applications for construction and transportation customers. Approximately 20 percent of Identec's revenue comes from providing RFID solutions to carmakers for tracking vehicles after they leave the production line or are in storage.
Baumer Ident's automaker customers include DaimlerChrysler (to which it also has resold Identec's offerings), Audi, BMW, Kia and Nissan. Identec also counts Volkswagen as one of its automotive customers. "We are stronger in the U.S. market, while Baumer is stronger in Korea and Japan," says Schedler.
According to Schedler, Identec had "double-digit millions" of dollars in revenue last year. Baumer, he added, is a similar-sized company. Located in Weinheim, Germany, Baumer Ident was previously a full subsidiary of Baumer Holding, based in Frauenfeld, Switzerland.
Identec Solutions will integrate Baumer Ident's offerings into its product portfolio and continue to market them. As of Aug. 1, the Baumer Ident's headquarters in Weinheim will operate as Identec Solutions Deutschland.
