Pro-face America, a majority owned subsidiary of Osaka based Digital Electronics Corporation, has signed a definitive agreement to purchase Xycom Automation a specialist company in the Industrial PC, VMEbus and PC-based control products sector with some 10% market share in the North American market. The acquisition is expected to complete in mid-February 2001.
Digital claims to hold 45% of the Japanese programmable operator interface market. Research carried out by Fuji Keizai in 1999 suggested that Digital also holds 39% of the Japanese Windows-based panel-mounted industrial PC products operated in the automation fields. The company’s international sales of operator interface products accounted for 30% of turnover in 2000.
Digital has been manufacturing programmable operator interfaces in Japan for 15 years. The company has been operating in the international arena since the mid-1990s.
Xycom Automation’s wholly owned European subsidiary is based in the UK and forms part of the Pro-face acquisition. Ian Law, sales director for the European operation, said: ‘Both companies enjoy significant market penetration in the major European markets but with complimentary product ranges. The combination creates a company with great strength in both breadth and depth in its target markets throughout the industrialised world.’
James E. McGrath, Chairman of the Board of Xycom Automation, commented: ‘Digital Electronics’ resources and market presence will help Xycom to realise its full potential.’
Digital’s strong focus and commitment to the human machine interface industries combined with Xycom’s large installed base in the industrial PC market will undoubtedly be a force to be reckoned with.