Display manufacturer Optimation acquired

Edited by the Engineeringtalk editorial team Apr 12, 2001

Nematron Corporation has acquired 100% of Optimation, a Huntsville, Alabama-based company that develops, produces and markets industrial communications and display products for industrial automation.

Nematron Corporation has acquired 100% of Optimation, a Huntsville, Alabama-based company that develops, produces and markets industrial communications and display products for industrial automation.

The acquisition of Optimation is an integral part of Nematron's strategic business plan to build a global product and service organization focused on plant floor-to-enterprise integration.

Optimation has developed a solid reputation as the price leader in low-end displays and Ethernet networked input/output devices.

Optimation recorded more than $2 million of revenues in 2000.

It was formed in 1991 by its current management team that has developed the current OptiMate and OptiLogic series of products described above.

The OptiMate Operator Interfaces and OptiLogic range of low cost Ethernet I/O will augment the existing Nematron product range and will be marketed through the existing European distribution chain.

Nematron acquired Optimation for approximately $1.0 million in stock and $0.6 million in cash.

A portion of the cash paid was provided by newly issued subordinated debt.

Optimation will continue to operate as Nematron's wholly owned subsidiary and key Optimation personnel will remain with the consolidated companies.

Matthew Galvez, Nematron's President, said, "The acquisition of Optimation promises to be a very important step for Nematron as we transform our business around our innovative Control and Information Station concept.

Optimation brings a cost-effective industrial operator interface line that helps us continue the long tradition started by Nematron in this area.

Optimation's Ethernet I/O products will contribute to the execution of our "whole product" strategy by providing an inexpensive and increasingly popular way of collecting and distributing information at the machine level.

Additionally, Optimation's management team are experienced product developers that will help evolve our combined product line to the next technological stage demanded by the marketplace.

With Optimation's strengths in material handling, semiconductor equipment, packaging and various process control markets, we benefit from a broader customer base and an enhanced revenue stream." Dennis Sierk, Optimation's President, said, "Optimation's products are price/performance leaders in the marketplace, and its solutions are ideally suited for changing technology in the current and emerging marketplace.

With the combination of Optimation's products with Nematron's world-class high-end products and its best-in-class automation software, we now have an exciting full range of products for today's market.

The wide-reaching ability of products to communicate from the simplest device to the most complex presents enormous possibilities as the modern enterprise increasingly demands more real time information from its factory floor.".