Delta Electronics Inc. plans to acquire the remaining shares of its surveillance camera subsidiary VIVOTEK Inc. in a transaction valued at NT$3.73 billion ($115 million), taking the company private as the security equipment market faces headwinds from tariffs and soft demand.
The Taiwanese electronics giant will pay NT$100 ($3.08) per share in cash for the 43.12% of VIVOTEK it doesn’t already own, a premium of about 17.5% over the stock’s closing price. Delta first acquired a majority stake in the IP camera maker in 2017 for NT$98 per share.
The deal comes as VIVOTEK struggles with deteriorating finances. The company posted a net loss of NT$50.9 million ($1.6 million) in the third quarter, its second consecutive quarterly loss. For the first nine months, VIVOTEK recorded losses totaling NT$65.9 million ($2 million).
Delta CEO Ping Cheng acknowledged at a recent investor conference that the building automation division has underperformed due to currency fluctuations and tariff impacts. He noted that surveillance equipment investment tends to decline when market conditions weaken.
VIVOTEK shareholders will vote on the transaction at a special meeting scheduled for January 16, 2026, with completion targeted for late March. The company would then delist from the Taiwan Stock Exchange.
While Delta frames the consolidation as a way to accelerate decision-making and capture synergies, the timing suggests an opportunistic buyout of a struggling unit at depressed valuations.
