Mobile Network Operator Elisa Expands its Industrial Software Capabilities with CamLine Acquisition

In January 2021, Finnish mobile operator Elisa announced the expansion of its smart manufacturing expertise with the acquisition of manufacturing execution systems and quality management software provider CamLine Group. Initially, Elisa will be paying out €60 million, with a further €4 million due if 2021‒2023 targets are achieved.

Founded in 1989, CamLine employs 220 professionals delivering solutions to 350 factories worldwide across the semiconductor, electronics, solar, advanced materials, and medical device sectors. The company’s manufacturing execution system (MES), InFrame Synapse, supports discrete manufacturing processes such as production planning, monitoring, and control. The LineWorks Suite focuses on helping manufacturers with quality assurance for both incoming (LineWorks SQM) and outgoing (LineWorks CQM) materials, and monitors their production lines with statistical process controls (LineWorks SPACE). In addition, LineWorks RM is a solution for online recipe management, and Cornerstone is an engineering data analytics solution helping engineers design experiments and analyze dependencies. Finally, XperiDesk’s document management solution helps users store information relating to experiments (including design, tracking, measurement, and analysis).

CamLine will form part of Elisa’s Smart Factory business unit that provides clients with digital services such as data analytics and data visualization. The acquisition builds on Elisa’s strategy to diversify its revenue streams beyond localized mobile services (see IN-5939) by creating autonomous business units. In addition to Elisa Smart Factory, there is Elisa Automate (providing automation solutions to Communication Service Providers [CSPs]) and Elisa Videra (helps clients to plan for and deliver implementations of visual communications).

Elisa’s Smart Factory business unit provides customers with the ability to collect data from machines, devices, and enterprise systems. This enables them, for example, to identify process bottlenecks, manage their assets, and receive real-time visibility of the processes in 3D.

But manufacturers need the ability to easily take actions from such insights. Manufacturers are looking to create digital threads with data passing easily from one application to another, improving decision making and operations along the way. The acquisition of CamLine means that Elisa can offer clients an integrated solution whereby the insights feed into the InFrame Synapse MES, suggesting adjustments to the production line or to quality assurance teams via LineWorks SQM. Elisa is now in a position to offer manufacturers solutions whatever their progress in digital transformation. Not all customers will be ready to develop a digital thread, but many really need to improve their operations by investing in an MES system or quality control software. By having an installed base of less advanced customers, Elisa can upsell its more sophisticated tools when customers are ready.

Elisa doesn’t plan to subsume CamLine into the Smart Factory Unit, but rather will operate CamLine as an independent subsidiary supported by Elisa’s resources and capabilities, with current management continuing in their roles. The hands-off approach is replicated in the announcement in October 2020 that Elisa made a strategic investment to gain a majority stake in CalcuQuote (a supply chain software provider for the electronics manufacturing services [EMS] industry based in the United States), which will also remain an independent entity. As acquired assets retain their identities and management, existing customers should have confidence their current solutions won’t be mothballed; rather, they will be improved far more quickly with the addition of Elisa’s capabilities.

For Elisa, the acquisition provides additional data sources and expertise in manufacturing workflows so that the firm can support manufacturers’ ambitions to create digital threads in their operations and digital twins of their facilities. While Elisa’s expertise is in analytics, ML and data visualization will augment CamLine's existing offerings by adding the capability to perform predictive analytics or root cause analysis. The blending of expertise will enable the firms to offer end-to-end solutions which benefit both Elisa and CamLine’s efforts to grow their revenue streams, and for Elisa in particular to grow its geographic footprint.  

Elisa has a stated aim to be considered a leading provider of factory digitalization solutions both in Europe and beyond. Combining Elisa Smart Factory, CamLine, and CalcuQuote would deliver a comprehensive solution for electronics manufacturers as opposed to the firm buying a fragmented solution set. In order to build revenues in the Asia-Pacific region, and in particular target electronics manufacturers located there, Elisa will need to establish a partner network or make further acquisitions.