HMS Acquires Molex Industrial Communications Unit
From left to right: Martin Hoffert, HMS Director of Corporate Strategy and M&A, Matthijs Von Witte, Molex Industrial VP of Sales, Bartek S. Candell, HMS Industrial VP of Network Solutions, and Dave Atkinson, Molex Industrial VP and Managing Director
- HMS Networks has signed a binding agreement to acquire part of Molex’s Industrial Solutions Business Unit.
- The deal includes intellectual property, product portfolios, customer relationships, and development teams in Canada and France.
- Both companies see the acquisition as strategically beneficial, aligning with HMS’s long-term goals while allowing Molex to focus on its core business.
Details of the Acquisition
Molex, a global leader in electronics manufacturing with more than 50,000 employees across 38 countries, is transferring its industrial communications division to HMS. The acquisition covers hardware and software intellectual property, network interface cards, and software packages. Customer relationships in the United States and Japan are part of the deal, alongside development teams in Waterloo, Canada, and Le Thuit Anger, France. HMS will also take over the French company Woodhead Software & Electronics S.A.S.U.
Strategic Fit and Synergies
Executives from both firms emphasized the complementary nature of the acquisition. HMS identified synergies between Molex’s network interface cards and its own controllers and scanners, creating opportunities for cross-selling. Bartek Candell, Vice President at HMS Networks, said the move strengthens the INT division’s portfolio and supports its 2030 strategy. Molex leaders expressed confidence that their customers will benefit from HMS’s expertise in industrial communications.
Market Impact and Future Outlook
The primary motivation behind the acquisition is access to experienced engineering teams and strategic intellectual property. HMS aims to expand its software and hardware offerings while broadening its customer base in North America, a key growth market. Molex will concentrate on its main business areas, while HMS integrates the new assets into its operations. The deal reflects a broader industry trend of companies consolidating specialized units to strengthen competitiveness in industrial networking.
HMS Networks has a history of expanding through acquisitions, particularly in areas that enhance its industrial communication capabilities. Molex, meanwhile, continues to focus on core electronics manufacturing, having divested non-essential units in recent years. Analysts note that industrial networking is becoming increasingly important as factories adopt digitalization and automation strategies. This acquisition positions HMS to play a larger role in supporting connected industry solutions worldwide.
