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Advantech Acquires 80% Stake of OMRON Nohgata To Expand Advantech’s Revenues and Enhance the Localized Service in Japan

10/26/2018

In the board meeting today, global intelligent systems leader Advantech (2395.TW) announced to enter into an agreement, subject to customary closing conditions, to acquire 80% stake of OMRON Nohgata, a subsidiary of OMRON Corporation (TYO 6645). Advantech and its 100% owned subsidiary Advantech Japan (AJP) will own 50% and 30% stake respectively. OMRON Nohgata will be led by the current management team and will join Advantech’s Embedded IoT Business Group in developing new products and integrating sales resources. With this acquisition, Advantech will effectively expand its embedded system market share in Japan and enhance the localized manufacturing services capability. Also Advantech envisions to further cooperate with OMRON Corporation in IoT platform.

OMRON Nohgata, established in 1966, focuses on high-mix and small volume tailor-made embedded design-in services in Fukuoka Japan, mainly serving customers based in Western Japan. OMRON Nohgata will be renamed as “Advantech Nohgata” after the transaction.

Mr. Miller Chang, the president of Embedded IoT Group, stated that, “Japan is Advantech’s strategic market for IoT business opportunities. It is our view that there are big opportunities in both industrial and IoT markets given the strong and advanced industrial demand. Japan-based industrial customers generate stable demand and moderate growth in embedded system market annually. The current core business of OMRON Nohgata is the Design & Manufacturing Services (DMS) for domain customers such as healthcare, robot industry, and machine builders. In the future, Advantech Nohgata will cooperate with AJP’s Tokyo office in sales organization and leverage Advantech’ strength in centralized component procurement, embedded computing design-in capability and WISE-PaaS IoT platform to expand the business scope. We believe this acquisition can hugely improve the competitiveness of Advantech Nohgata and enhance Advantech’s domestic market coverage in Western Japan.”