OMRON Corporation (Head Office: Kyoto, Japan; President and CEO: Yoshihito Yamada; hereinafter, “OMRON”) and Advantech Co., Ltd. (Headquarters: Taipei, Taiwan; Chairman & CEO: Ke Cheng Liu; hereinafter, “Advantech”), the world’s leading manufacturer of IPCs (industrial personal computers), today signed an agreement where OMRON would transfer 80% of the stock of OMRON Nohgata Co., Ltd. (hereinafter, “OMRON Nohgata”) owned by OMRON to Advantech. The stock transfer will be completed by early-January 2019.
OMRON will retain the remaining 20% of OMRON Nohgata’s stock for the time being.
OMRON Nohgata is a wholly owned consolidated subsidiary of OMRON, and it is responsible for original design manufacturing (ODM) services for industrial electronic equipment. Tapping into its strength in the development design and fabrication technology for high-speed, high-density printed circuit boards (PCBs), OMRON Nohgata has expanded its business outside OMRON group by focusing on its core business of ODM, where it undertakes the process of development to manufacturing of industrial electronic equipment in its entirety, a service which requires a high level of reliability and a stable supply over a long term, thus helping its customers to improve their added value.
As part of its long-term vision “Value Generation 2020 (VG2020),” which was launched in 2011, OMRON has been strengthening its business portfolio management with a view toward maximizing value of each of its businesses. This stock transfer is the latest of these strengthening efforts. By combining Advantech’s various IoT products and advanced knowhow in production control with OMRON Nohgata’s ability to customize and modify its products in accordance with the needs of its ODM customers, great synergistic opportunities are expected in the form of business expansion and new business creation in Japan.
The impact of this stock transfer on OMRON’s consolidated and non-consolidated earnings for the fiscal year ending on March 31, 2019 is expected to be minor.