Industrial Computer Market Consolidation

The industrial computer market, following the general trend in commercial computing, has been consolidating for several years. Here is another example. Advantech just announced the acquisition of DLoG GmbH from Augusta Technologie for €12.85 million. DLoG was founded in 1985 with its headquarters in Munich, Germany. Consisting of about 75 employees, the company has design, R&D, sales and marketing departments. The company is a leading provider of rugged industrial computers placed as the number three player in Europe with a 19.3% market share. In 2008, DLoG achieved revenue of €18.5 million, followed by €13 million in 2009 due to world economic crises. The company is on track to grow again in 2010, which is reflected in this first quarter bookings and billings marked by steady and optimistic momentum.

Advantech will integrate both parties’ strengths and anticipates becoming a global market leader in industrial in-vehicle computing. In addition to DLoG’s focus in Europe, both parties will jointly develop the Asia and U.S. markets. After acquisition, the company will be rebranded to Advantech-DLoG to reflect the synergy of the integration. In the future, Advantech-DLoG will focus on four in-vehicle computing markets: Intralogistic, Heavy Duty, Stationary Applications, and Fleet Management.

Advantech CEO KC Liu states, “DLoG boasts sophisticated German craftsmanship, design quality and distinguished brand architecture in the European market. I highly appreciate the achievement of the current DLoG management team in the in-vehicle computing business. After the acquisition, the current DLoG CEO, Hans-Peter Nüdling will continue to lead Advantech-DLoG.”