Advantech to acquire French POS, KIOSK brand

Taipei, April 29 (CNA) Advantech Co., a leading industrial Internet of Things solution provider in Taiwan, has agreed to acquire France-based Point of Sale (POS) and KIOSK brand Aures Technologies SA to expand its global intelligence retail business.

In a statement released over the weekend, Advantech, which is well known for its industrial computer portfolio, said it aims to acquire a 100 percent stake in Aures through transactions with the French company's major shareholder and a tender offer.

Advantech said it has reached an agreement with Aures' major shareholder to acquire a stake in block trade for up to 6.7 euros (US$7.17) per share. It will launch the tender offer to buy the outstanding Aures shares also for up to 6.7 euros per share.

The transactions are expected to cost Advantech up to about NT$924 million, the company said.

According to international news media, Aures' major shareholder is Patrick Cathala, the founder of the French company, and after the transaction, Advantech will have a 35.8 percent stake in the French POS brand.

After the transaction, Cathala will step down from his positions as chairman of the board of directors and chief executive officer of Aures and will be replaced by an Advantech representative, the reports said.

In addition, Advantech said in the statement that it will spend 5 million euros to subscribe to convertible bonds newly issued by Aures in a bid to boost the French company's working capital.

All of these transactions will not go ahead until completion of internal approval processes by both parties and regulatory approval from relevant authorities, Advantech said.

According to Advantech, Aures has established a strong presence for its POS equipment in Europe, Australia and the United States and enjoyed high brand recognition and a robust sales network.

In particular, Aures's U.S.-based subsidiary -- Retail Technology Group -- serves as a leading provider of retail IT system services with a nationwide service network, Advantech said.

Advantech said the two companies highly complement each other in terms of regional coverage, product portfolio, and organizational capabilities, adding the acquisition will demonstrate Advantech's shift from a traditional product-driven approach to a deepening of its presence and operations.

"The rise of AI and shifts in consumer behavior have spurred industry transformation and consolidation trends," M.C. Chiang (江明志), vice president of Advantech Service-IoT Group said in the statement.

"In response to these changes, Advantech has been continuously deepening its presence and expanding its hardware and software product portfolio," Chiang said.

In the first quarter of this year, Advantech posted NT$1.99 billion in net profit, down 33 percent from a year earlier with earnings per share at NT$2.32, the lowest level for the first quarter in four years as global demand from enterprise clients remained weak.

In the January-March period, Advantech generated NT$13.88 billion in consolidated sales, down 20 percent from a year earlier. The company has said sales momentum is expected to stay slow in the second quarter.