Delta Technologies Plc. recently announced that TMTN Factory Kft., acquired by its wholly owned subsidiary Delta Software Technologies Kft., a pioneer in Industry 4.0 related technologies, will continue its activities under the name Delta Automation Kft. We talked to Bálint Pongrácz, founder and CEO of the Industry 4.0 company, and Levente Pércsi, member of the board of Delta Technologies, about the details of the transaction and integration.
What was the trigger for the transaction?
PL: A We are constantly looking for and exploring opportunities to strengthen Delta Technologies Plc's position in the domestic IT market. In our business strategy published in 2020, we explained that in the future the company will place a strong emphasis on Industry 4.0 solutions, with the aim of gaining a leading position in this segment. While monitoring the market, we found TMTN Factory Ltd. and decided to enter into negotiations to acquire it.
What was the purpose of Delta Technologies Plc?
PL: The Industry 4.0 company and its CEO, Bálint Pongrácz, have unique competences in this field, be it automation, sensors, robotics or other related areas. The purpose of the transaction was therefore clearly to contribute to the expansion of Delta's expertise and the consolidation of its professional position.
Bálint Pongrácz is also an employee of Delta Systems Ltd.
PB: Indeed, I have been with the company for four months now. Delta had already inquired about acquiring my company before I was hired, and given that the company is one of the leading systems integrators in the country with a solid background, resources and an impressive track record, I was happy to nod my head in favour of cooperation. The company is an official contracted systems integrator partner of SICK AG, and as a result we were faced with a wide range of automation challenges right from the start. However, as a start-up company, we were able to mobilise a finite capacity, which pushed business interests to the background. At the same time, it soon became clear that we had a very similar way of thinking about the latest developments in the industry, so there was no question that Delta Technologies Plc and I chose the most advantageous form of cooperation.
PL: Delta Technologies Plc. In fact, with the employment of Bálint Pongrácz, Delta Technologies has acquired competence. It was an important objective for Delta to strengthen our team with a professional with experience in Industry 4.0, and Bálint's company is specialized in this field, so it was obvious that both Bálint and the company would be welcome to Delta. The partnership that Bálint mentioned and the knowledge and manufacturer support that comes with it can provide a solid foundation for the implementation of the strategy we have set out. SICK is a recognised and leading player in industrial sensor technology and machine safety, areas that are inevitable for a competent systems integrator in the field of Industry 4.0.
Why did the company benefit from joining Delta Technologies Plc?
PB: As you can see from the company data, Industry 4.0 is still a young company. My original idea was to build a company that could take a big slice of the pie in the domestic implementation of Industry 4.0 solutions. However, as a start-up, it is difficult to succeed in a market dominated by established, decades-old business relationships. Delta's commitment and 33 years of IT history give the company what it did not have before: the strategic relationships and tailor-made solutions to develop the necessary tailor-made solutions to meet market needs. As Delta Automation Ltd. and part of Nyrt. we have all the potential to make the original plans a success.
How will the company be integrated into Delta Technologies Plc?
PL: Already during the acquisition negotiations, a dedicated team has been working on the integration issue and we see the integration processes as being successful. Our objectives are to give the subsidiary the flexibility to innovate and adapt to business conditions, and we are providing all the necessary tools to do so. We are trying to take as much of the burden - financial, legal, administrative - off its shoulders as possible, so that it can concentrate on the professional work it really knows how to do.
What are your plans for the future?
PL: Our plans for the future are very much in line with the business goals that Bálint has set for Industry 4.0. Our intention is to become even stronger with Bálint's professional experience, even capable of fully customized and nnovum solutions, to win new contracts in the field of Industry 4.0 tailored to our customers' needs. Through these, we increase the number of our referrals, starting the spiral process at the end of which we can refer to Delta Technologies as one of the leading Industry 4.0 contractors in the country.
