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Hitachi Acquires Manufacturing Systems Integrator Flexware

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Hitachi has acquired manufacturing systems integrator Flexware Innovation for an undisclosed amount.

This is technology M&A deal number 794 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

Hitachi, founded in 1910, is based in Tokyo, Japan. The company has 24,968 employees listed on LinkedIn. Hitachi’s areas of expertise include information and telecommunication systems, social infrastructure and industrial systems, electronic systems and equipment, construction machinery, high functional materials and components, automotive systems, smart life and eco-friendly systems, financial services, logistics service, rail, energy, DX and GX.

Flexware Innovation, founded in 1996, is based in Fishers, Indiana. The company has 143 employees listed on LinkedIn. Flexware’s areas of expertise include manufacturing execution systems, automation engineering, manufacturing IT, manufacturing intelligence, systems integration, internet of things and custom software.

Hitachi and Flexware: A Strategic Move

The acquisition of Flexware is a strategic move for Hitachi, according to the company, as it seeks to create a seamless solution that “links shop floor and top floor with data and digital technology.”

The acquisition of Flexware strengthens and enhances Hitachi’s manufacturing execution systems (MES), supervisory control and data acquisition (SCADA), software development, business intelligence (BI) and enterprise resource planning (ERP) implementation capabilities in North America.

The company has been making a push into the North American market, and says it expects to continue experiencing growth through the adoption of digital technologies. In 2019, Hitachi acquired Capax Global, a Microsoft Azure cloud services partner in Chicago, Illinois. In 2021, it acquired software developer and digital product engineering specialist GlobalLogic Inc.

Hitachi was attracted to the Flexware acquisition based on the latter company’s focus on manufacturing execution systems.

Hitachi Acquires Flexware: Executive Insight

Scott Whitlock, founder, president & CEO, Flexware Innovation
Scott Whitlock, founder, president & CEO, Flexware Innovation

Kazunobu Morita, vice president and executive officer, CEO of the Industrial Digital Business Unit, Hitachi, commented:

"I am very happy to have Flexware Innovation as a new family member of the Hitachi Group. Moving forward, we will strive to solve customers' challenges and maximize their corporate value in North America through the combination of Hitachi's products, OT, IT, and Lumada which utilizes advanced digital technologies, the SI technologies and development capabilities of Flexware Innovation, the robotic SI & automation of JR Automation, and other resources.”

Scott Whitlock, founder, president and CEO, Flexware Innovation, said:

"Our people are passionate about solving problems for our customers. This new partnership with Hitachi will allow us to do that on a larger stage, with strong vision and backing from a respected global technology company. We have developed a unique culture at Flexware Innovation that merges perfectly with Hitachi's Founding Spirit. I am genuinely excited for our future together."

Whitlock will remain president and CEO of Flexware Innovation in partnership with the leaders of Hitachi Industrial Holdings Americas, the company said.

Meanwhile, Hitachi recently reorganized its MSSP and cybersecurity businesses to boost its managed security services worldwide.