Avocor is now part of an $8 billion company, or thereabouts. On Sept. 25, AUO Display Plus (ADP), a subsidiary of AUO Corporation (AUO) and a global provider of industrial and commercial displays, announced the acquisition of Avocor, an innovator in collaboration and communication solutions. The strategic acquisition is set to accelerate Avocor's growth by integrating AUO Display Plus' extensive expertise in display technology and global resources. AUO's consolidated net revenue in 2023 was $8.07 billion.
As part of AUO’s ongoing biaxial transformation strategy, the acquisition marks a significant step in deepening its vertical market applications under the Go Vertical initiative. By integrating Avocor’s expertise in interactive display solutions and its sales capabilities and distribution channels, AUO Display Plus is positioned to offer more diverse product platforms and comprehensive services to global customers in the education and enterprise markets. Through the acquisition, ADP will be able to accelerate its expansion into new verticals and solidify its position as a leader in smart display solutions with a reinforced value chain ecosystem.
Since 2022, AUO Display Plus has been a significant investor in Avocor, fostering a partnership that has enabled Avocor to expand its product offerings, including dvLED displays, digital signage, and commercial displays. The acquisition represents a natural progression of this successful collaboration, with AUO and ADP fully committed to investing in Avocor's future.
"We are excited to embark on this journey with Avocor," said Frank Ko, CEO and President of AUO. This strategic move will further strengthen our presence in the solution business while also amplifying the cross-business synergies within the AUO group. Together, we are poised to set new benchmarks in the display industry, leveraging our combined expertise to deliver unparalleled value to our customers and partners."
A Perfectly Integrated Match
With nine years as a leading interactive technology solutions company, the Oregon-based Avocor is poised for an accelerated expansion of its roadmap. "Around 2019, I sat down with the board and said, 'I've done this long enough in displays to know that this market would mature quick, commoditize a bit, and overnight you would begin to have the large players really start to exert their muscle,'" said Scott Hix, CEO of Avocor, general manager of AUO Education and Enterprise Business Group, and chief marketing officer of ADP.
Although Avocor had carved out a position as a global corporate brand, Hix knew where this was heading: "We needed to be part of a bigger whole eventually."
After discussions with several interested companies, Hix said, "Frank and I really hit it off. AUO's vision was to take what has been a very dominant LCD and LED manufacturer and begin to go more vertical in areas of full solutions and then get closer to the market with brands that are internal to their business."
Avocor was looking upstream toward an investment partner with a strong balance sheet that equally had technology that could differentiate its brand and product roadmap. "We also were looking for a partner to help us control those vertical value chains from component to solution to brand," Hix added. "It was a perfect match."
Compared to many acquisitions that begin to integrate once the ink has dried, as noted, AUO made a significant investment in Avocor in 2022. About a year and a half ago, Hix was asked to head up the education and enterprise strategy and form a business unit inside AUO Display Plus. "We've long since begun to integrate the supply chain and the product development teams, and of course, with their engineering strength, we now have access to a vast amount of technology," he added.
With hints shown at Integrated Systems Europe in early 2024 and in a big way at InfoComm in June, Avocor partners got to see firsthand a significant change. "All of a sudden, they got to see our roadmap expansion and integrated flat panel display, and we began to show digital signage products. We even showed non-touch, prosumer products, and we now have a larger format direct view LED," Hix explained. "We have an entire software stack around user interface, user experience, launchers, device managers, and wireless."
A year before the AUO's announcement to acquire Avocor, the engineering groups had been working together and delivered all the proof points of the innovation that could come from the partnership. "It's really exciting for my sales team because when talking with our valued channel partners, we can now be the one-stop-shop instead of just being an integrated flat panel display brand," Hix added.
According to Hix, the Avocor brand message has just gained a lot of muscle. "We now can stand for longevity. With the strength of AUO Display Plus, we're not going anywhere," he said. "More importantly, our customers look for innovation and value in terms of cost-benefit. When you consider the supply chain that we now have behind us, in addition to the technology access, we truly are our brand now that will be here for a very long time that can meet all of your large format display needs, that should have the best value in product with the best technology innovation because we control the elements of the value chain that most brands do not."
All 57 of Avocor's employees will remain with the company, with more being added. "When I went into this process, one of the biggest checkboxes was cultural fit," Hix said. "Check."
Driving Innovation and Market Leadership
The acquisition will significantly strengthen both AUO Display Plus and Avocor's capabilities in several key areas:
Roadmap Expansion: Increased investment in R&D to bring innovative display solutions to market, addressing customers' evolving needs.
Accelerated Go-to-Market Strategies: Enhanced marketing and sales efforts to rapidly introduce cutting-edge products and expand global reach.
Supply Chain Enhancements: Optimized supply chain management to ensure the seamless production and delivery of high-quality products.
Regional Operations Alignment: Strengthened regional operations to better serve customers and partners worldwide.
"This acquisition is a testament to our shared vision and commitment to innovation and excellence," said Hix. "With AUO and ADP's support, Avocor is positioned for unprecedented growth and expansion, enhancing our product roadmap and accelerating our go-to-market strategies."
