Transaction creates leadership of expertise in fiber design, assembly and manufacturing of critical components to meet the needs of a broader range connectivity demand in global data center markets.
Hexatronic Group AB (Hexatronic) has signed an agreement to acquire Data Center Systems (DCS), based in the United States. DCS provides end-to-end fiber connectivity solutions to the U.S. data center market. The acquisition is subject to customary closing conditions and is expected to close early October.
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“With DCS, Hexatronic enters the U.S. market for data centers that is expected to experience continued growth. Ever-increasing data traffic as well as the trend towards (distributed) edge computing increases the need for both larger, hyper-scale data centers as well as small- and mid-sized data centers closer to the edge. ”
With 20 years in the U.S. data center market, DCS is well-established as a provider of complete fiber connectivity system solutions, including infrastructure design solutions, installation and managed services. DCS’ innovative, consultative approach to connectivity is well-suited for large, purpose-built data center cabling solutions. Not only does DCS provide these companies with a total solution design to meet their unique requirements and priorities, but DCS tailors that solution to lay the foundation for future technology and scalability.
The base of DCS customers are mainly telecom, financial services, cloud, and other technology companies within the U.S. Fortune 500. DCS was founded in 2002, and has more than 100 employees as of today. The headquarters and production facility are located in Dallas, Texas. DCS’ senior leadership team under CEO, Kevin Ehringer, will remain in place.
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“As a recognized front-runner in the structured cabling and fiber industry, Data Center Systems (DCS) continues to see unprecedented growth in the demand for our products and services. The impressive combination of Hexatronic and DCS distinctly positions us to reach beyond North America and powerfully contend as a worldwide leader of storage and network connectivity for the world’s largest and most connected enterprise-class data centers,” said Kevin Ehringer, founder and CEO of DCS.
“We are very pleased to welcome the team of DCS to Hexatronic Group. A highly skilled team dedicated to a consultative approach to ensure the best network performance possible. They also share our view of the value of providing complete system solutions and has taken it one step further by adding several services.
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“With DCS, Hexatronic enters the U.S. market for data centers that is expected to experience continued growth. Ever-increasing data traffic as well as the trend towards (distributed) edge computing increases the need for both larger, hyper-scale data centers as well as small- and mid-sized data centers closer to the edge.
“The U.S. today is Hexatronic’s largest market, and one of three strategic growth markets. With the acquisition of DCS we are now able to provide customers with locally assembled and terminated products for Hexatronic’s complete FTTH-solution, which will shorten turnaround times and increase flexibility, and on top of that offer DCS’s expertise in assembly design and advisory service. DCS’s production in the U.S. will complement our current connectivity productions in Sweden, Estonia and the U.K.,” said Henrik Larsson Lyon, CEO of Hexatronic Group.
“We believe our offerings and services have always been held to a superior standard based on our intense customer focus (serving the Fortune 500). Aligning with Hexatronic means that we will have significantly more new plays in the game plan to serve our customers. We’ve always offered incredibly competitive pricing in the markets and customers we serve, recognized quality and value, stringent adherence to customer product specifications, and now our customers will also enjoy increased distribution upside as well,” said Mike Cox, COO of DCS.
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