Rockwell acquires ICS Triplex

Rockwell Automation has confirmed its fast developing interest in the main stream process automation market by announcing that it has reached an agreement to acquire ICS for GBP110m cash

This is the final move, bringing down the curtain on the Industrial Control Services Group saga.

For that sum, Rockwell is getting, in ICS Triplex, one of the very few world class Safety Instrumented Systems (SIS) businesses not to be already owned by a process automation major, as well as the ICS Triplex ISaGRAF automation software business which ICS acquired in 2003, and the independent main instrument contractor (MAC) Silvertech, which was acquired in 2005.

The ICS Group projected revenues for the year to May 31st 2007 are GBP70m and it has more than 500 employees, with headquarters in Maldon in the UK and operations in Europe, the Middle East, Asia and North America.

ICS Triplex ISaGRAF is based in Canada.

For a full discussion of the implications of this move see this month's issue of the Insider.

Further comments arise from the month's major announcements:.

* "Wireless Technology is forming an increasingly important part of the signal and data communication layer on modern process plants" Dr Graeme Philp, CEO , MTL Instruments Group.

* "Industrial Defender is the only company that can fully protect these industrial environments against increasing cyber security threats" Brian Ahern, President and CEO, Industrial Defender.

* "Proficy Process Systems is unique in the market" Steve Ryan, Director of Process Solutions, GE Fanuc Automation.

* A better outlook for Invensys investors, who have seen the share price as high as 393p, or more than double its 52 week low, although it has subsequently fallen back by some 35p.

Results to 31 March 2007 showed an operating profits rise of 30% on turnover up 7%: commenting on the results, Henriksson said that they were “the beginning of something good”.

Further good news came from the City where Goldman Sachs raised its rating of Invensys shares from 'sell' to 'neutral' and increased its 12-month share price target from 260 to 365p, while HSBC Holdings switched its rating from 'underweight' to 'neutral'.

Maybe Eurotherm has passed its sell by date now?.

* The Insider's latest Podcast, produced in collaboration with PR agency Ballard Communications Management (BCM) and their Engineering News, also comments on the process industry developments, and can be downloaded by going to the Insider website.

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