Technology giants in Germany, Austria and Switzerland (DACH) are transforming their businesses by buying, funding or partnering with connected and intelligent manufacturing technologies and data management companies to ensure they are well-positioned for the Fourth Industrial Revolution – Industry 4.0.
That’s according to technology and mergers and acquisitions advisor Hampleton Partners’ Industry 4.0 M&A Market Report, which records more than 600 deals in 2018, up from 513 in 2017. The analysis reveals that the highest level of interest lies in AI technologies with context information, digital threads (linking data through the lifecycle of a product and its communication with other cyber-physical systems) and digital twin solutions (digital replications of a physical body, eg a machine).
Peter Baumgartner, sector principal, Hampleton Partners, says: “A mere buzzword a few years ago, Industry 4.0 has become today’s reality and is one of the hottest M&A sectors in the DACH region. Liquidity is at a high level, meaning that buyers have the funds to support start-ups or established Industry 4.0 players, and the cutting-edge technology coming out of the region has generated many M&A deals.”
Industry 4.0 has become integral to the region’s technology giants such as Bosch Rexroth, Festo and Siemens, whilst a recent strategic partnership between Rockwell Automation and PTC, accompanied by a USD1 billion equity investment from the former, further demonstrates the importance of integrating innovations such as IoT and augmented reality with more traditional industrial automation.
Hampleton’s report highlights that four per cent of the investment received in the DACH region hailed from China. Chinese investment goals are shifting from acquiring consumer brands to building out a European presence in high-tech processes. Deals like the USD5 billion tie-up between German robotics giant KUKA and Chinese home appliance manufacturer Midea underline this drive for DACH-based Industry 4.0 assets.
Baumgartner says: “This industrial revolution is forcing traditional companies to initiate synergy-driven partnerships and increase their M&A activity as they absorb high-tech data management and connected technologies to remain competitive.”
