On May 28, Walter Koch, founder, majority owner and chief executive officer of Logicdata Electronic & Software Entwicklungs GmbH announced plans to sell the company to Zhejiang Jiecang Linear Motion Technology Co. Ltd., a publicly traded entity based in Shanghai. The deal was expected to close for an undisclosed sum within three to six weeks, pending regulatory approvals.
Logicdata, headquartered in Deutschlandsberg, Austria, has 270 employees and will operate as a separate company within Jiecang, while taking advantage of the manufacturing and sourcing capabilities of its much larger acquirer. Combined, the two form a one-stop shop for linear motion components and systems supplies, with a total of 2,500 employees worldwide and $350 million in annual revenues, according to a news release.
As part of the transaction, Jiecang is to invest $24.3 million in Logicdata’s product innovation and growth, the news release said.
“With the acquisition of Logicdata, we are adding an outstanding team; great innovation power; a valuable, longstanding customer base in Europe and the U.S.; and a high-performance, premium product portfolio,” said Renchang Hu, Jiecang founder and chair. “I would like to warmly welcome the entire Logicdata team, as well as all Logicdata customers to our group, and I’m looking forward to a great joint future of prosperous growth with a strong focus on fulfilling our clients’ needs in a fast-expanding industry.”
Koch added: “We are happy that through this synergetic merger with a highly industrialized and financially strong partner, we will be able to accelerate our innovative, customer-centric growth path. Based on the combined competencies of both Jiecang and Logicdata, I’m looking forward to serving our global customer base even better with innovative and cost-competitive products in the coming years.”