Article
Eltna: New life to Tranax?
Little is known about the Korean company that acquired Tranax.
October 6, 2008 by Tracy Kitten — Editor, AMC
Last week, California-based Tranax Technologies Inc. announced that Won-Gee Lee, the chief executive of the Korean holding corporation that last month announced its buyout of Tranax, would replace Dr. Hansup Kwon as Tranax's new CEO. Tranax, now a part of Eltna, is expected to continue operating under the Tranax name as a separate entity, not a subsidiary, says Jeffrey Lee, Tranax' spokesman.
Tranax says it has sold and supported more than 100,000 ATMs and self-service terminals throughout North America. Since 2006, when Tranax began manufacturing its own terminals, it has shipped more than 20,000 ATMs and self-service machines. |
"We believe the new vertically integrated company will direct manufacturing and product know-how, and the depth of market experience that Tranax brings will create a strong new Tranax," said Won Gee Lee in a statement about the sale.
Last month, Tranax quietly announced moving from the 79,000-square-foot Newark, Calif., headquarters it opened in May 2007 to offices in Hayward, Calif. The new Hayward facility is about 30,000 square feet, including office and warehouse space. Industry sources say Tranax spent the last several months selling off random pieces of office equipment, a signal of an impending sale — a sale that nevertheless remained well beneath the radar.
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Eltna, founded two years ago by Won Gee Lee, has reportedly worked with Tranax in the past as an original equipment manufacturer for Tranax ATMs.
"This company focuses on industries that have ATMs in them, and they have focused a lot of attention on banking products," said Tranax' Jeffrey Lee shortly after the acquisition announcement. "They bring expertise from their industry verticals, and they may have acquired other companies that have some expertise in these verticals."
Those industry verticals include not only the ATM systems and components space, but also the imaging, design and manufacturing spaces, according to Tranax.
Information about Eltna Group is not easy to find. For one, the company is relatively new. For two, it's a privately held holding corporation in Korea. Even Tranax, says Jeffrey Lee, does not have a direct contact for corporate communications at Eltna.
But the vertical expertise that Hantle's former executives bring to Eltna will undoubtedly play a role in the vertical strength Eltna brings to Tranax — which now says it plans to place greater emphasis on its retail ATM development, building upon the success of its 1700 and c4000.
"R&D is going to be one of the things at the top of the list, but overall, we just have a sense of excitement, because we know how this deal with Eltna can help us," Jeffrey Lee said.
According to Thomson Financial, in May Hantle acquired a minority stake in Celrun Co. Ltd., a precision technology manufacturer. In March, the company acquired OnTown Co. Ltd., a motion picture production services provider, from Yellow Entertainment Co. Ltd. And in December, Hantle bought Ilicomm, an optical components manufacturer.
Changes at the top
In addition to Won Gee Lee, Tranax' new CEO, the company also named Michael Suh its new chief financial officer. Suh fills the vacancy left by former Tranax CFO James McCanna. Suh's background in accounting and recent experience as a member of the Eltna management team is expected to help make Tranax's transition to new management swift and smooth.
"The only way to win in a highly competitive market is to build efficient organization and direct manufacturing to deliver high-quality products at a competitive price," Won Gee Lee said in a statement. "I had an opportunity to work with the Tranax team in the past. We have an extremely strong team with dedication to bringing best-in-class products and services to our customers. I am also pleased that Dr. Kwon will remain a member of the board, and help the company as an advisor to ensure a smooth transition."
The rest of the Tranax board, which was named in April 2007, shortly after Tranax severance from Nautilus Hyosung, is expected to remain.
No changes to Tranax's 30 employees, which includes management, are expected.
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