OMRON Corporation (TSE: 6645, NYSE: OMRNY), a global leader in automation, sensing and control technologies, announced that it has reached a preliminary agreement to acquire the semiconductor business assets of Seiko Epson’s consolidated subsidiary, Yasu Semiconductor Corporation.
OMRON develops, manufactures, and markets custom ICs that offer functionality and cost-performance not found in general-purpose semiconductors, as well as MEMS (Micro Electro Mechanical Systems) products such as flow sensors and pressure sensors that utilize semiconductor processes in their manufacture. OMRON’s semiconductor-related sales for fiscal 2005 were 6.6 billion yen. The acquisition of the business assets resulting from this preliminary agreement is aimed at further reinforcing these semiconductor operations, while strengthening the OMRON Group’s line of semiconductor-equipped products.
The parties will now enter into detailed discussions, aiming to conclude the final contract and complete the acquisition by March 2007.
Assets to be Acquired
The asset to be acquired is the semiconductor factory owned by YSC in Yasu, Shiga, Japan.
The acquisition resulting from this preliminary agreement is not expected to have a significant material effect on OMRON’s consolidated or non-consolidated financial outlook for the fiscal year ending March 2007.
About OMRON Corporation
Headquartered in Kyoto, Japan, OMRON Corporation (TSE: 6645; NYSE: OMRNY) is a global leader in the field of automation. Established in 1933 and headed by President and CEO Hisao Sakuta, OMRON has more than 28,000 employees in over 35 countries working to provide products and services to customers in a variety of fields including industrial automation, electronic components, social systems (ticket gate machines, ticket vending machines, and traffic control) and healthcare. The company is divided into five regions and head offices are in Japan (Kyoto), Asia Pacific (Singapore), China (Shanghai), Europe (Amsterdam) and US (Chicago).