Delta Moves Toward Full Acquisition of VIVOTEK Through Cash-for-Share Exchange: Boards Approve NT$3.73 Billion Deal
Delta Electronics, Inc. and its long-time partner VIVOTEK Inc. have taken a significant step toward deeper strategic integration with the announcement that both companies’ boards of directors have approved a proposed cash-for-share exchange transaction. Under this agreement, Delta intends to acquire 100% of VIVOTEK’s outstanding shares, a move valued at approximately NT$3,733 million. The proposed acquisition not only strengthens Delta’s expanding presence in the smart building and automation sectors but further solidifies VIVOTEK’s role within Delta’s global strategy for intelligent surveillance and integrated solutions.
According to the terms of the agreement, the offer price has been set at NT$100 per share, representing an estimated 16.8% premium based on VIVOTEK’s average closing price over the five trading days prior to the company’s board resolution. The proposed premium is designed to reflect both VIVOTEK’s long-term value and its evolving role within Delta’s broader business portfolio, while also giving shareholders a compelling incentive to approve the deal.
As part of the procedural steps required for the completion of the transaction, VIVOTEK will convene an extraordinary general meeting on January 16, 2026, where shareholders will vote on the Transaction and various related matters. If approved, the share exchange is expected to take effect on March 27, 2026, a date tentatively set by both parties. Once the exchange becomes effective, VIVOTEK will transition into a wholly-owned subsidiary of Delta, after which the company will be delisted from the Taiwan Stock Exchange and cease its status as a publicly traded entity.
A Strategic Move Aligned With Delta’s Smart Building Vision
Ping Cheng, Chairman and CEO of Delta, emphasized the strategic importance of the acquisition, noting that the integration of VIVOTEK’s expertise directly enhances Delta’s ambitions in the smart building domain. He explained that as markets evolve at a rapid pace—driven by digital transformation, AI adoption, and rising global demand for intelligent infrastructure—companies must strengthen internal coordination and decision-making agility.
Cheng highlighted that VIVOTEK has already played a pivotal role in Delta’s Building Automation Business Group since joining the Delta family several years ago. The company’s world-leading video surveillance technology has become a core element in Delta’s end-to-end automation solutions, enabling the group to provide advanced security, monitoring, and system-level integration across modern buildings, campuses, and industrial environments.
By taking full ownership of VIVOTEK, Delta expects to streamline resource allocation, accelerate technology convergence, and expand its global solution offerings more efficiently. Cheng noted that deeper integration will help unify product roadmaps, reduce overlap in operations, and allow for a more synchronized approach toward market expansion. In particular, Delta aims to leverage VIVOTEK’s strong reputation in imaging, cybersecurity, and AI-driven analytics to augment its full portfolio of energy management, automation, and IoT-enabled building technologies.
VIVOTEK Sees New Growth Horizons Under Complete Integration
In parallel, VIVOTEK Chairman Bill Lo expressed his strong support for the transaction and described the share exchange as a natural and exciting progression for the company. Over the years, VIVOTEK has invested heavily in research and development to maintain its leadership in the surveillance and security industry—a sector that has undergone dramatic transformation driven by artificial intelligence, cloud computing, and advanced sensor technologies.
Lo emphasized that since becoming part of Delta, VIVOTEK has shifted from primarily offering hardware-centric surveillance products to becoming a comprehensive provider of AI-powered security and monitoring solutions. This includes AI-enhanced cameras, intelligent video analysis, integrated security platforms, and domain-specialized solutions tailored for urban environments, industrial settings, and commercial facilities.
By becoming a wholly-owned subsidiary, VIVOTEK expects to gain greater operational flexibility as well as broader access to Delta’s extensive global resources. Lo highlighted that integrating more deeply with Delta will allow VIVOTEK to tap into worldwide manufacturing capabilities, cutting-edge R&D ecosystems, and an expanded international market presence. This expanded network will help the company accelerate innovation cycles, expand its solution coverage, and collaborate more closely with Delta’s cross-business units.
Lo also underscored the shared commitment of both companies to building a safer, smarter, and more sustainable society. Through closer synergy, VIVOTEK and Delta aim to co-create next-generation surveillance and building automation systems that empower cities, businesses, and institutions with more intelligent and energy-efficient solutions. The collaboration, he noted, is especially vital as global demand for integrated security and building management services continues to grow alongside digital transformation efforts across industries.
Transaction Conditions and Final Steps Before Completion
While the boards of both companies have approved the agreement, the Transaction is still subject to the fulfillment of various conditions precedent outlined in the contract. These may include regulatory approvals, shareholder consent, and procedural steps to ensure compliance with Taiwan’s securities regulations. Only upon satisfying all such requirements will the share exchange be finalized.
Once fully completed, VIVOTEK will delist from the Taiwan Stock Exchange on the effective date, marking the end of its era as a public company. The delisting is a necessary part of the transition, as wholly-owned subsidiaries of Delta are not publicly traded. Nevertheless, both companies have expressed confidence that the long-term advantages of integration far outweigh the loss of public listing status, particularly given the rapidly evolving and highly competitive technology landscape in which both organizations operate.
A New Chapter for Integrated Smart Infrastructure
The Transaction represents more than just a change in ownership structure; it symbolizes the continued evolution of Delta’s strategic transformation toward integrated, AI-enabled building and industrial ecosystems. As the world faces escalating demand for smart management of energy, security, automation, and digital infrastructure, companies are increasingly expected to deliver holistic solutions that span hardware, software, analytics, and services.
By consolidating VIVOTEK into its corporate structure, Delta is positioning itself to offer more unified solutions that combine surveillance, automation, and intelligent control systems. This integration strengthens Delta’s ability to serve customers across commercial buildings, industrial sites, transportation hubs, public facilities, and smart cities.
For VIVOTEK, the acquisition marks the beginning of a new phase—one where the company can scale innovation faster, expand R&D capability, and explore new global market opportunities under the umbrella of a stable and resource-rich parent company. With both companies aligned in their long-term goals, the upcoming acquisition is expected to unlock greater collaborative value and push forward their shared ambition of building a smarter, more sustainable world.
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