Nidec to Acquire Genmark Automation, Inc., an US Semiconductor Wafer Handling Robot Manufacturer

KYOTO, Japan, April 24, 2018 (GLOBE NEWSWIRE) -- Nidec Corporation (TSE:6594) (OTC US:NJDCY) (the “Company” or “Nidec”) today announced that the Company’s Board of Directors has resolved on April 24, 2018 to have Nidec Sankyo Corporation (“Nidec Sankyo”), the Company’s subsidiary, acquire 100% equity shares of Genmark Automation, Inc. (“Genmark”) through Genmark Sub Corporation (“GS”), a special purpose company which Genmark has established for this acquisition.

1. Purpose and Background of the Transaction
          Nidec Sankyo manufactures and sells wafer handling robots used in the process of semiconductor and flat panel display manufacturing in the clean rooms. As the demand for semiconductor production equipment is expected to grow significantly, Nidec Sankyo aims to increase its presence in the semiconductor industry by expanding product lineup and enhancing global reach.
            Genmark mainly develops, manufactures and sells atmospheric and vacuum robots for semiconductor wafer handling together with ancillary equipment. Genmark has particular strength in developing robots that operates in IoT environment, for which the demand is expected to grow. In addition, Genmark has multiple talented engineers who can meet severe demands from major customers, strong marketing and after-sales network in the USA, Europe and Asia. Genmark has established close relationship with major semiconductor manufacturers.
            After acquiring Genmark, Nidec Sankyo will utilize Genmark’s product development and production capabilities to strengthen its product lineup and global network, which will allow cross sales between Nidec Sankyo and Genmark. Nidec Sankyo aims to further grow by capturing demand of expanding semiconductor market
    
2.    Outline of Nidec Sankyo　(As of March 31, 2018)

(1) Company name                         Nidec Sankyo Corporation
(2) Headquarter                              5329, Shimosuwa-machi, Suwa-gun, Nagano Japan
(3) Name and title of                       President: Kenji Hirasawa
    representative person
(4) Description of                            Develops, manufactures and sells motors, motor drive units, card readers, industrial robots, plastic                  business                                  molded parts, music boxes, etc.
(5) Paid-up capital                          JPY 35,270 million

3. Outline of Genmark　(As of December 31, 2017)

 (1) Company name               Genmark Automation, Inc. 
 (2) Headquarter                    46723 Lakeview Blvd.
                                               Fremont, California 94538 U.S.A.
 (3) Name and title of              Chairman & CEO: Mila Genov
     representative person
(4) Description of business    Develops, manufactures and sells semiconductor wafer
                                               handling robots, motion control products and integrated tool
                                               automation 
(5) Establishment                   August 15, 1989
(6) Major shareholder and      Mila Genov: 83.8%
    percentage of shareholding Others: 16.2%
(7) Relationship between
    Genmark and the Company  Capital relationship      Not applicable
                                                   Human relationship     Not applicable
                                                   Business relationship  Not applicable 
(8) Financials
  Accounting period
(Unit: millions of USD)              Fiscal year ended                       Fiscal year ended                   Fiscal year ended 
                                                   December 2015                         December  2016                    December 2017
Net assets                                           6.1                                              5.3                                       11.2 
Total assets                                         28.5                                            27.0                                     16.4 
Net sales                                             26.1                                            24.3                                      24.7 
Adjusted operating income(*)              (2.2)                                            1.5                                        3.9
Adjusted operating income margin(*)  (8.3%)                                          6.2%                                    15.8%

(*) Excludes payment which will not occur post acquisition and one-time expense

4. Outline of the Transaction

(1)　Consideration
           The consideration will be all cash. Purchase price cannot be disclosed due to agreement with the seller. Purchase price is understood to be proper and has been determined through the due diligence process.
(2)　Payment and Funding
           Cash on hand
(3)　Transaction structure
           Nidec Sankyo plans to enter into reverse triangular merger in order to acquire 100% of Genmark shares. Nidec Sankyo will acquire 100% of GS, special purpose company established and fully owned by Genmark. As a result of the merger of Genmark and GS, which will be approved by Genmark majority shareholders, GS shares will convert into Genmark shares. Genmark shareholders will receive cash from Nidec Sankyo and all existing Genmark shares will be cancelled. As a result, Genmark will become a fully owned subsidiary of Nidec Sankyo. 
(4)　Schedule
           Estimated closing of the transaction: Early May 2018            

5.Effect on Financial Performance for the Current Fiscal Year

The transaction is expected to have no significant impact on Nidec’s consolidated financial performance for the fiscal year ending March 31, 2019.                      

Contact:

Masahiro Nagayasu 
General Manager 
Investor Relations 
+81-75-935-6140
ir@nidec.com