To close the gap in machine and factory automation, ABB has announced to acquire Austrian B&R, the largest independent provider focused on product- and software-based, open-architecture solutions for machine and factory automation worldwide.
B&R, founded in 1979 by Erwin [ds_preview]Bernecker and Josef Rainer is headquartered in Eggelsberg, Austria, employs more than 3,000 people, including about 1,000 R&D and application engineers. It operates across 70 countries, generating sales of more than 600 mill. $ (2015/16) in the 20 bn $ machine and factory automation market segment. According to ABB, the combination will result in a comprehensive offering for customers of industrial automation, by pairing B&R‘s innovative products, software and solutions for modern machine and factory automation with ABB’s world-leading offering in robotics, process automation, digitalization and electrification.
Through the acquisition, ABB aims to expands its leading position in industrial automation and to seize growth opportunities resulting from the »Fourth Industrial Revolution«. In addition, ABB takes a major step in expanding its digital offering by combining portfolio of digital solutions, ABB Ability, with B&R‘s application and software platforms, its large installed base, customer access and tailored automation solutions.
ABB CEO Ulrich Spiesshofer said: »This acquisition perfectly delivers on our Next Level strategy. With our unique digital offering and our installed base of more than 70 mill. connected devices, 70,000 control systems and now more than 3 million automated machines and 27,000 factory installations around the world, we enable our combined global customer base to seize the huge opportunities of the Fourth Industrial Revolution.«
With the acquisition, ABB will expand its industrial automation offering by integrating B&R‘s innovative products in PLC, Industrial PCs and servo motion as well as its software and solution suite. ABB will offer its customers a uniquely comprehensive, open-architecture automation portfolio.
Substantial investments in innovation
B&R has grown successfully with a revenue CAGR of 11 % over the last two decades. Revenues more than quintupled since 2000 to more than 600 mill. $ (2015/16). The company has a rapidly growing global customer base of more than 4,000 machine manufacturers, a proven track record in automation software and solutions and unrivaled application expertise for customers in the machine and factory automation market segment.
Innovation is at the heart of both companies. B&R invests more than 10 % of its sales in R&D and employs more than 1,000 people in R&D and application engineering. ABB spends 1.5 bn $ annually on R&D and employs some 30,000 technologists and engineering specialists. Going forward, ABB and B&R will continue to invest considerably in R&D.
On closing of the transaction, B&R will become part of ABB’s Industrial Automation division as a new global business unit – Machine & Factory Automation – headed by the current Managing Director, Hans Wimmer. Both companies consider B&R‘s management and employees as a key driver of future growth and the business integration together with their counterparts from ABB. The co-founders of B&R, Erwin Bernecker and Josef Rainer, will act as advisors during the integration phase to ensure continuity.
