Milwaukee-based Rockwell Automation Inc. on Wednesday announced it plans to acquire Ohio-based software delivery and consulting firm Kalypso LP and Italian provider of digital automation technologies ASEM S.p.A.
Terms for the deals were not disclosed, but the transactions are expected to close this spring. Speaking at the Barclays Industrial Select Conference, Blake Moret, chairman, president and chief executive officer of Rockwell, said the deals would add more than 1 percentage point to annual sales in the next fiscal year. At the midpoint of the company’s fiscal 2020 guidance, that growth would suggest about $70 million in additional revenue.
ASEM provides industrial PCs, human-machine interface hardware and software, remote access capabilities and secure industrial IoT gateway solutions. Fran Wlodarczyk, senior vice president for architecture and software at Rockwell, said the acquisition would help the company delivery high-performance, integrated automation solutions.
“ASEM’s products will provide our customers with a high degree of configurability for their industrial computing needs through innovative hardware and software that allows them to achieve faster time to market, lower their cost of ownership, improve asset utilization, and better manage enterprise risk,” Wlodarczyk said.
Moret noted that ASEM’s customer base is primarily made up of machine builders in Italy and Germany.
“This helps our stated intention of pursuing increased market share in Europe,” he said.
Kalypso specializes in digital transformation of industrial companies with a focus on life sceinces, consumer products and high-tech industrial.
“Kalypso’s deep roster of experienced consultants and technologists, expertise across the digital value chain and established customer base in key growth sectors will enable us to further accelerate our customers’ Connected Enterprise journey and support Rockwell Automation’s strategic objective of continued double-digit growth in Information Solutions and Connected Services,” said Frank Kulaszewicz, senior vice president, control products & solutions at Rockwell Automation.
Moret said the companies should be able to grow at double-digit rate with synergies from the acquisition moving forward. He added he is pleased with the capabilities Rockwell has built to handle acquisitions in recent years.
“There’s an opportunity to move faster by partnering and in some cases acquiring,” he said.