This Research Note examines the emerging strategic priorities of Delta Group in the smart commercial buildings space. We have mapped M&A, strategic partnerships, and investment activity to ascertain the growth ambitions of the business, by categorizing the various business relationships by technology and investment type.

This article is intended as a non-exhaustive indicator of Delta’s strategic direction between 2016 and 2023.

With brands including Amerlux, Delta Controls, LOYTEC, March Networks, and VIVOTEK, Delta's building automation solutions focus on LED high-end lighting, building management control systems, and smart security surveillance.

The building automation sector has been identified as a key pillar of Delta’s growth strategy which has resulted in a series of acquisitions over the last 8 years. In total, our strategy mapping exercise highlights 6 acquisitions and 2 strategic partnerships.

Delta Controls

Founded in 1980 in Surrey, BC, Canada, Delta Controls provides global building automation solutions through its network of partners in 80+ countries. Acquired by Delta Electronics in 2016, Delta Controls is the major building automation brand in the group, mainly serving the original equipment manufacturer, original brand manufacturer, and original design manufacturer markets.

The company has more than 400 global systems integrators acting as customers' local service and support centres and manufactures all products in the Vancouver region, Canada, offering control solutions for buildings in the commercial, healthcare, hospitality, education, and leisure markets. LinkedIn reports 319 employees.

LOYTEC

In April 2016, Delta reached an agreement to acquire 85% stake in the LOYTEC group’s Loy Tec Electronics GmbH and Innocontrol Electronics GmbH for 72 million euros.

Founded in 1999 and based in Vienna, Austria, LOYTEC Electronics GmbH is a European provider of intelligent networked control products for building automation.

LOYTEC develops, manufactures, and distributes router and gateway solutions, embedded Automation Servers and I/O Controllers, the room automation system L-ROC, DALI lighting controls, the VAV system LIOB-AIR, and also graphical user interfaces in the form of touch panels or via PCs or mobile devices.

Amerlux

In March 2019, Delta acquired New Jersey-based Amerlux, a manufacturer of architectural LED lighting solutions, for $90 million. The acquisition enhances Delta’s capability to provide a broader portfolio of IoT-enabled smart solutions for sustainable buildings and cities.

March Networks

Delta International Holding Ltd BV completed the acquisition of March Networks, the Canadian-based video surveillance firm, March Networks in Dec 2021 for $114 million. 

Headquartered in Ottawa, Ontario, March Networks is a provider of enterprise video surveillance and video-based business intelligence solutions.

DoIT Software

In October 2022, March Networks acquired the FOCUS Business Analytics Platform from DoIT Software Sp.Z.o.o based in Gliwice, Poland. The transaction fast-tracks its transition to cloud video and gives March Networks a new cloud-based data analytics platform that will be integrated into its existing Searchlight software, further extending its ability to deliver operational and business intelligence to its customers.

The newly established March Networks Poland facility is intended to serve as the company's development center for advanced data analytics and Artificial Intelligence (AI).

VIVOTEK

In October 2017, Delta acquired 49.2% stake in VIVOTEK, Inc. to serve as the security and intelligence core of Delta Building Automation Business. VIVOTEK Inc. (TWSE: 3454) was founded in Taiwan in 2000. The company has become a leading brand in the global IP surveillance industry.

In 2022, with the assistance of Delta Group, VIVOTEK has grown into a company of more than 1,500 employees and overall revenue reached NT 9.95 billion (USD $317 million), an 82.5% increase as compared to 2021.

Recent strategic partnerships include collaboration with:

• Vaxtor Technologies, a Madrid, Spain-based specialist for license plate recognition software and OCR technology.
• IDTECK, a Korean company to integrate IDTECK's access control system with VIVOTEK VSS, enhancing security, real-time monitoring, and incident investigation.

With building automation as a major focus in Delta's long-term growth strategy, the company is a serious contender in the global smart buildings market.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.