Cognex Corp. (CGNX) recently announced that it will acquire the web monitoring product line of Monitoring Technology Corp. (MTC) in a cash transaction. With this acquisition, Cognex plans to enter the web monitoring business. Machine Technology manufactures products for monitoring industrial equipment and processes. Other terms of the transaction have not been disclosed.
A web monitoring system (WMS) consists of a network of high-speed cameras linked to a computer running specialized software that controls the acquisition, storage and synchronization of video from each of the cameras.
Management added that the acquisition is an excellent fit in its Surface Inspection Systems Division. This WMS is complementary to Cognex’s Web Inspection System (WIS). The combination will enable the company to provide a fully integrated system to paper manufacturers and converters around the world. When used together the WIS automatically identifies and classifies defects, and the WMS then provides the customer with the ability to determine the root causes of each of those defects so that they can be quickly eliminated.
Cognex is a leading provider of machine vision products which capture and analyze visual information in order to automate tasks, primarily in manufacturing processes, where vision is required. A lot of manufacturing equipments require machine vision because of the increasing demand for speed and accuracy in manufacturing processes.
Cognex plans to develop new products and functionality which makes vision easy to use along with building a worldwide sales and support infrastructure in order to access more of the potential market for machine vision. The company also intends to enter into new industrial and commercial vision applications through the internal development of new products along with acquisition of businesses and technologies.
Cognex, like many other tech and non-tech companies, faced a sudden decline in demand in the second half of 2008. With economy showing signs of recovery, management expects that demand will improve in the coming quarters.
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