The South Burlington-based computer hardware manufacturer OnLogic will be purchased by Japanese technology company Omron for $675 million, the companies announced on Tuesday.
Omron, which specializes in automation, is acquiring OnLogic as a way to further boost its industrial technology capabilities, according to a joint press release. The deal is expected to close in January.
“OnLogic will continue operating as an independent business, maintaining our executive leadership team, brand, culture, and direct sales model,” spokesperson Darek Fanton said in an email. “Crucially for our local community, our global headquarters, with all business functions including manufacturing and engineering operations, will remain right here in South Burlington.”
OnLogic has 300 employees worldwide, including 160 in Vermont. The company’s headquarters is in a highly visible building off Interstate 89. It will maintain its local workforce, which includes manufacturing and research and development.
Those employees are in for a “thank you” bonus of $1,500 for each month they’ve been employed by OnLogic. A five-year employee would get $90,000; a 10-year employee, $180,000. And shareholding employees will get an equity payout.
Omron has 26,000 employees worldwide. Its headquarters are in Kyoto.
In the press release, Omron CEO Junta Tsujinaga said North America was a key growth market for his company and buying OnLogic would help further solidify their foundation on the continent.
“OnLogic’s industrial computing expertise, flexibility and strong customer relationships complement our strengths in automation and control,” he said. “Together, we see an opportunity to create new value for customers as manufacturing becomes more connected, data-driven and intelligent.”
OnLogic CEO Sean Larkin said the deal gives his company access to a global supply chain and more resources.
In an FAQ sheet provided to the press, a company spokesperson said a strategic review conducted last year found that, while the company didn’t need to seek a buyer in order to survive, finding one would “allow us to achieve our long-term goals much faster.”
Husband-and-wife team Roland and Lisa Groeneveld launched the company in 2003 from their kitchen table. They built the business in Vermont to be closer to family.
Initially known as Logic Supply, OnLogic is known for building hardware that can survive in challenging environments. Its clients have included NASA, Amazon, General Dynamics, General Motors and Universal Studios.
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