Advantech buy 80% stake in Japan’s Omron Nohgata for $16.5M

Advantech has announced it will invest JPY1.84 billion (US$16.5 million) to acquire a total of 80% shareholding in Japan-based embedded PC maker Omron Nohgata, a subsidiary of Japan-based Omron. Advantech will own a 50% stake with the remaining taken by Advantech’s branch office in Japan.

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.”