Leadec acquires Diversified Automation to expand robotics play

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Leadec has acquired Diversified Automation, an automation controls and software solution provider. The acquisition, which was announced today, is effective December 31, 2020. With this acquisition, Leadec expands its portfolio into parcel automation and strengthens its existing operations in North America. Terms of the acquisition were not disclosed.

Louisville, Kentucky-based Diversified Automation was founded in 2002. It offers system controls and software solutions to mechanical integrators serving global parcel and e-commerce companies such as UPS, FedEx and Amazon, with more than 140 experts based all across the country. Diversified generates revenues of approximately $100 million per year. They possess strong expertise in hardware and software engineering and project management.

Leadec is a global service provider for factories and their infrastructure. The company, headquartered in Stuttgart, employs about 20,000 people worldwide. In 2019 Leadec earned sales of around EUR 900 million.

Leadec and Diversified serve complementary industries. Diversified will benefit from Leadec’s automotive relationships and reputation in the U.S. Since Diversified is well established in the express parcel shipping industry, Leadec can take advantage of e-commerce-driven growth in the U.S.

“Engineering and process automation are the spearhead of Leadec’s service offering across the factory life cycle,” said Markus Glaser-Gallion, CEO of the Leadec Group. “Diversified Automation ideally completes our service portfolio with controls and software solutions for the parcel industry, a market segment thriving due to the growth of e-commerce. This also strengthens the technical profile of our US operations.”

Leadec currently generates about 23% of its sales in the U.S. with a workforce of about 2,200 employees, mainly with long-running on-site service contracts in the manufacturing industry.

“We have built a forward-focused company,” said Tony Young, founder and president of Diversified Automation. “One that combines innovative thinking, deep technical knowledge, and professional project management, meeting the needs of our core customers. We design for stability and reliability. Together with Leadec we now take the next step to accelerate growth for our customers and ourselves. I am excited about this new direction for our company, and for the great culture and values fit that we have with Leadec.”

Investments and mergers and acquisitions in the robotics industry got off to a fast start in 2021. Teledyne is acquiring FLIR for $8 billion, while Stryker acquired OrthoSensor, for an undisclosed amount, to enhance its Mako surgical robots. And AMP Robotics, a developer of pick-and-place robots that sort recyclable materials from waste flows, raised a $55 million Series B.