The specialist for solutions explicitly tailored to critical infrastructure networks is now being acquired by the Phoenix Contact Group: iS5 Communications is breaking new ground as of 2023.
Acquisition of iS5 Communications by Phoenix Contact
The Canadian company iS5 Communications has been acquired by the Phoenix Contact Group. The intention is to further expand the business together, according to Phoenix’s current vice president. Martin Müller stated that he wanted to use the know-how of iS5 Communications so that the two companies could jointly achieve a leading position on the market.
The area of critical infrastructure systems is to be further advanced, and the acquisition will be particularly important for the areas of data analysis and cybersecurity. In the future, the two companies would like to occupy a strategically important position; the merger of the two companies was only the first step in this direction.
Successful iS5 Communications was an earlier investment target
iS5 Communications was founded more than ten years ago. From 2012 until today, the company has continued to move forward, with over 40 people now working here. They are all experts in their field and are mainly concerned with the merging of IT and IIoT (Industrial Internet of Things). At the same time, these employees bring enough experience in engineering.
Phoenix Contact already invested in the company in 2018 in a financing round at that time. The venture capital company Phoenix Contact Innovation Ventures invested and thus laid the foundation for further joint activities.
From then on, product development and sales ran in a joint direction, with Phoenix Contact USA Inc. also becoming involved. The takeover that has now taken place therefore does not come as a complete surprise, but was prepared several years ago and thus planned for the long term.
Today, both sides are happy about the development, which in the recent past ensured that two global players on the market act together. Pino Porciello, Chief Executive Officer of iS5, assumes that the previous cooperative areas of product and technology development were only the first step and that the cooperation will continue to grow as a result of the takeover. New business areas can be developed, always in the knowledge that they can rely on each other’s know-how.
About Phoenix Contact GmbH & Co. KG
The company offers innovative solutions and products used in the fields of networking, automation and electrification. Infrastructure and the economy benefit from the solutions of the globally active umbrella brand, which continues as a family-owned company. The aim is to create a sustainable world that offers long-term growth prospects. In the future, the aim is to operate outside the usual core businesses and make a name for itself in areas other than those of digitalization, mobility and electrification.
In total, the company employs more than 20,300 people, with sales of around 2.97 billion euros in 2021. Production takes place in eleven countries, with different levels of vertical integration. More than 50 sales companies belong to the company. This ensures that the desired proximity to customers and the respective markets is maintained at all times.