Omron acquires Microscan Systems for US$157 million in bid to boost automation technology

28 Aug 2018 --- Omron has acquired Microscan Systems, Inc from Spectris plc, for a total cash consideration of US$157 million (£123 million). Omron, manufacturers of factory automation systems and control equipment, hopes the move will benefit its technological capacity, including the Internet of Things (IoT), thereby strengthening its ability to offer “more comprehensive solutions such as traceability and verification to the packaging industry,” Nico Hooiveld, Market Manager at Omron Industrial Automation, tells PackagingInsights.

“Omron expects to acquire a diversity of code readers incorporating Microscan Systems’ advanced 2D code reading technology and integrate these with Omron's automation technology employed in its extensive line of control equipment. By so doing, Omron seeks to offer comprehensive solution packages that are tailored to the challenges faced by each industry,” says Hooiveld.

“IoT is part of this and is also becoming more important in the packaging and food manufacturing industries. Once the data capture process is in place, it is possible to start analyzing the data to see how efficiently a line is running and to identify potential bottlenecks in the process. It will also be possible to monitor device condition, permitting preventative maintenance,” he adds.

Microscan is a global provider of machine vision technology and solutions for critical identification, inspection and verification applications. Spectris’, who owned Microscan Sytems, strategy is transitioning to provide innovative customer solutions incorporating hardware, software and services in selected markets. In this context, Spectris believes Microscan’s next stage of development can be better fulfilled elsewhere.

Commenting on the transaction, John O’Higgins, Chief Executive of Spectris, says: “This is an important step in focusing Spectris on its areas of strength. Omron is well-aligned strategically with Microscan and as such, we believe that this will be a good home for Microscan in the next phase of its corporate journey.”

By inviting Microscan Systems into its group, Omron aims to help its customers develop a flexible style of manufacturing that meets increasingly diversified consumer requirements. This will be done by coding the information of all components and production equipment in the manufacturing environment. At the same time, Omron seeks to help customers avoid frequent quality issues by tracing the source of problems. Through these endeavors, Omron is determined to create a safe and secure society in collaboration with client companies, the company explains.

Adapting to a changing industry
In recent years, manufacturers have become committed to achieving more exacting traceability and enhancing governance regarding product safety as stipulated in the Electronic Industry Citizenship Coalition (EICC) Code of Conduct. In doing so, they can respond to growing demands for product safety and security, while eliminating quality issues.

Final products are becoming increasingly personalized, reflecting the diversification of consumer preferences and this leads to a growing need for high-mix, low-volume manufacturing. Moreover, to reach the ideal of one-to-one customized production, companies are realizing the importance of the ability to trace individual products through serialization. Because of these trends, assigning an ID code to each product or component has become increasingly common in various industries, resulting in more exacting requirements for code readers used on manufacturing floors.

For example, in the pharmaceutical packaging industry, employment of serialization systems that mark a separate code on each box of medicine is being promoted to prevent counterfeiting and improve product safety.

Furthermore, by making mutual use of each company's sales network, Omron and Microscan Systems will offer individually optimized solutions for a wider range of customers.

PackagingInsights has reported on the huge growth of technology within the packaging sector, with a particular focus on the IoT and its role in both smart and connective packaging and in B2B logistics, management and tracing. You can read more on this topic here.

By Laxmi Haigh