KYOTO, Japan, Dec. 04, 2019 (GLOBE NEWSWIRE) — Nidec Corporation (TSE: 6594) (the “Company” or “Nidec”) today announced that the Company completed the acquisition of 90% ownership of Roboteq Inc. (“Roboteq”), a U.S.-based designer of ultra-low voltage (ULV) drives, from its owners through Nidec Motor Corporation (the “Transaction”). As a result of the Transaction, Roboteq became a consolidated subsidiary of Nidec, as outlined below:
1. Outline of New Subsidiary
|(1) Company Name:||Roboteq, Inc.|
|(2) Headquarters:||Scottsdale, AZ, U.S.|
|(4) Founders:||Cosma Pabouctsidis
(Cosma will remain after the Transaction.)
|(5) Principal Business:||Design & Sales of ULV Drives|
|(7) Sales:||US$ 7.1 million (fiscal year ended December 31, 2018)
US$ 9.4 million (estimated, fiscal year ended December 31, 2019)
2. Purpose of the Transaction and Future Operation Policy
Nidec has endeavored to strengthen its presence in some key future growth drivers, including robotization. To become a global leader in these markets, Nidec is focused on expanding its ability to provide package solutions to all its served markets as demand continues to increase for convenient, modular solutions. These include the robotics/automated guided vehicle (AGV) market, where Nidec Motor Corporation (formerly, Emerson Electric Co.’s motors and controls business, “NMC”), which Nidec acquired in September 2010, has been the primary operating subsidiary. The contemplated acquisition of Roboteq is a significant part of Nidec’s strategy to modularize its various product offerings and invest in key future growth drivers.
Roboteq is a leading designer of Ultra Low Voltage (ULV) drives for the rapidly growing AGV market. Roboteq products are used in AGVs for warehouses, security, and cleaning/agricultural use. Through the acquisition of Roboteq, Nidec will be able to provide AGV customers with ULV drives in addition to its servo motors and precision gear box offerings. The acquisition will also add navigation sensors and power management technology to fill the gap in Nidec’s current AGV platform, allowing Nidec to act as a single vendor that can offer full motor control system support to customers. Additionally, the integration of Roboteq’s engineering team into the existing Nidec Motion Control engineering team will further strengthen the Company’s R&D capabilities.
Upon completion of the acquisition, the initial step of the Nidec’s strategy to strengthen its ability to offer package solutions will be executed, and then Nidec plans to shift its strategic focus to achieving synergy among Nidec, NMC and the acquired operations and improving profitability.
3. Effect on Financial Performance for the Current Fiscal Year
The Transaction is expected to have the least significant impact on the Company’s consolidated financial performance for the fiscal year ending March 31, 2020. If necessary, the Company will make additional disclosure on a timely basis in accordance with the rules of the Tokyo Stock Exchange upon determination of further details.
Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the intent, belief, strategy, plans or expectations of the Nidec Group or other parties. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, the risks to successfully integrating the acquired business with the Nidec Group, the anticipated benefits of the Transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies and changes in business and regulatory environments. The Nidec Group does not undertake any obligation to update the forward-looking statements contained herein or the reasons why actual results could differ from those projected in the forward-looking statements except as may be required by law.