Advantech Acquires DLoG

March 11, 2010

The purchase of DLoG, a prominent maker of industrial computers in Europe, will enable Advantech to become a global industrial in-vehicle computing provider.

Taipei - Advantech, a leading IPC and eAutomation provider, announced the acquisition of 100% shareholding of DLoG GmbH from Augusta Technologie AG for €12.85 Million. The terms of this transaction have been approved by the Advantech and Augusta board of directors.

DLoG GmbH was founded in 1985, with its headquarters in Munich, Germany. Consisting of about 75 employees, the company has design, R&D, and 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 the 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.

Through this acquisition, Advantech will integrate both parties' strengths to become a global market leader in industrial in-vehicle computing. In addition to DLoG's current market-leading position and focus in Europe, both parties will jointly develop the Asia and U.S. markets. After the 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 that, "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."

Hans-Peter Nüdling gained multi-cultural, technological, and operational management experience during his long-term delegations in the U.S. and Southeast Asia. Prior to joining DLoG in 2007, he held various management positions in the electrical engineering sector, including ATI, AMD, and Infineon.

Hans-Peter Nüdling says, "Both Advantech and DLoG are experts in industrial in-vehicle computing. We are confident in developing more complete product lines, as well as raising higher quality and better services practice. This acquisition will also help DLoG expand from its current intralogistics and heavy duty segments into Advantech's strength in stationary applications and fleet management. In addition, the plan is to synergy sales, R&D, and manufacturing capabilities of both parties. Advantech-DLoG will have ample capability to offer ODM services to key customers. The sales network of Advantech will enable Advantech-DLoG to aggressively penetrate markets in the U.S. and Asia. Advantech-DLoG will continue to stay in the forefront of industrial in-vehicle computing markets."

KC Liu further elaborates, "The continuous satisfaction of DloG's current customers is the very first priority for Advantech-DLoG. To ensure this satisfaction, we will carefully maintain the stability of DLoG's supply chain, eco partners, and customer service model after the acquisition."

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