Nidec Corporation has completed the acquisition of 90% ownership of Roboteq Inc., a U.S.-based designer of ultra-low voltage (ULV) motor drives, from its owners through Nidec Motor Corporation. As a result, Roboteq became a consolidated subsidiary of Nidec.
Roboteq's sales have grown from $7.1 million in 2018 to $9.4 million in 2019. The company was founded in 2002 and has 20 employees in Scottsdale, Arizona.
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 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.
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.