Servotronix is one of the most promising companies in the Israeli high tech scene. The company develops new technologies in one of the twenty-first century’s hottest areas - robotics.
The company started operating in 1987, when Dr. Ilan Cohen set up "Servotech Control Technologies". In 1991, the company underwent various organizational changes including a name change to Servotronix. In the wake of these changes, the company started developing technologies for precision drives and control systems in electronic motion for industrial automation.
This field covers a wide range: from simple industrial machinery to complex equipment like CNC, mainly robots, to be found at the pinnacle of industrial technology. Robots and automated machinery currently fill a key role in the manufacturing process, and their use continually expands. Future manufacturing will be increasingly based on automatic machines and robots.
Servotronix has found its place in this important niche. The company develops hardware and software for motion precision and accuracy control of automated machinery, capable of rectifying any inaccuracies that occur, a sort of "traffic policeman" for robots and automatic machines.
Company founder Dr. Ilan Cohen, who has served as general manager ever since it was set up, says, "We deal with future technologies. When we set up the company in 1987, I already knew the direction the company would take - development of systems to control the movement of industrial machines. And that is what we have been doing to this day."
Involvement in global market
Servotronix develops state-of-the-art, unique high quality technologies, and maintains a cutting-edge level of innovation and advanced technology ability. The company has managed to market overseas a series of products that received very warm responses in various markets around the world.
The company harvested the fruits of its endeavors two years ago. Kollmorgen of the US gradually acquired 80% of company shares. It should noted that this was not a hostile takeover, bur rather a merger between two complementary entities.
In the framework of the strategic partnership, the Israeli company received larger exposure and easier filtration of global markets. Servotronix also received financial backing enabling it to continue R&D. The US company, for its part, received a company with a proven record in developing new products.
Kollmorgen has another long term calculation. It aims to become a global leader in motion control and motion engineering products. In this context, Servotronix will become the company’s major development center, and its most important for software and hardware development.
The ties between the companies have been advantageous to Servotronix in other areas as well. It received financing from BIRD-F (US-Israel Binational Industrial Research and Development Fund), in the form of a $2.4 million R&D grant. The product developed under this program sells extremely well and promotes accompanying sales of Kollmorgen engines.
Experts in the sector say the ties between the two companies boosted Servotronix up by several notches, both thanks to the exposure it receives because of its connection to the well known US technology giant, and the access it has to large available capital sources.
This factor is important to the company, although it is to Dr. Cohen’s credit that in the past ten years he has managed to navigate the company through the stormy waters of the high tech business without assistance from any source. Moreover, he managed to post a very handsome growth rate, as shown by the rise in staff and turnover.
In 1994-1997, i.e. before the ties with Kollmorgen, the company’s staff rose from 19 to 57, and turnover increased from $380,000 to $5.4 million. According to conservative estimates, in Y2000, the company’s turnover is likely to reach $11 million. These figures indicate the professional, technological and managerial capabilities of the company’s founders.
Published by Israel's Business Arena July 26, 1999