Advantech acquires 80% stake of Omron subsidiary

Oct 29, 2018

Advantech has entered into an agreement, subject to customary closing conditions, to acquire an 80 percent stake of Omron Nohgata, a subsidiary of Omron Corporation. Advantech and its 100-percent-owned subsidiary Advantech Japan will own 50 percent and 30 percent 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.

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.

"Japan is a strategic market for IoT business opportunities," said Miller Chang, the president of Embedded IoT Group. "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 Advantech’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."