Delta to Make Offer to Acquire 35-55% Stake in VIVOTEK
Delta Electronics Inc., a global provider of power and thermal management solutions, announced its board of directors has approved a proposal for a cash tender offer to acquire approximately 35 percent to 55 percent of the outstanding common shares of VIVOTEK Inc.
A press release by Delta reported, “This tender offer, which is expected to begin on August 9, 2017, and end on September 26, 2017, shall be satisfied when final effective tendered shares reach the aforementioned minimum.”
Delta’s chairman, Yancey Hai, said, “Our M&A strategy is an essential pillar of Delta’s long-term plan to sharpen its competitiveness under a rapidly evolving marketplace. We, therefore, remain committed to enhancing the value-added capabilities of our Building Automation Solutions. Security and video surveillance are such critical aspects in this field as they go way beyond buildings and actually support the creation of smart cities. VIVOTEK has been developing state-of-the-art video surveillance solutions for more than 17 years, including IoT-based smart imaging analytics. Upon completion of this tender offer, we expect to produce substantial synergies by integrating the technologies and market development platforms of both companies.”
VIVOTEK is a provider of video surveillance solutions. Leveraging Delta’s resources is expected to be highly beneficial to VIVOTEK’s overall business and its underlying shareholders’ equity, Delta stated in the press release, adding that from a product perspective, both companies could jointly develop competitive solutions capable of satisfying a larger spectrum of applications; in terms of business development, VIVOTEK could leverage Delta’s growing global presence and market channels to boost its performance; from a production standpoint, VIVOTEK could benefit from Delta’s automated manufacturing knowhow and significant procurement bargaining power.
In May 2017, Delta reorganized its corporate structure into three new business categories: power electronics, automation and infrastructure. In 2016, the company expanded its capabilities in building automation by acquiring two highly competent firms, Loytec and Delta Controls.
This is a developing story. Check back with SDM for updates.