Nidec Corporation will acquire OMRON Automotive Electronics Co. Ltd. via a stock purchase agreement.

Nidec positions its automotive motor business as one of its key strategic businesses, and is engaging in active efforts in the business for automotive motor market which is expected to grow rapidly in coming years. Nidec is particularly focusing on module products with electric power steering (EPS) motors, electric brake motors, etc. and electronic control units (ECU) in accordance with the current trends towards electrification and autonomous driving in the automotive industry, as well as EV traction motor systems, etc. for which significant future market growth can be expected.

The company anticipates that the electrification trend will accelerate further in response to the global environmental and energy related problems and will continue to engage in research and development with Elesys, an ECU manufacturer which joined Nidec group in 2014, to create more electrification products going forward.

OMRON Automotive Electronics engages in research and development, manufacturing, and sales of automotive electronics products as a subsidiary of OMRON Group, which has strengths in control equipment, systems, and electronic components based on its sensing and control technologies. In particular, OMRON Automotive Electronics has produced many high-quality control products for body control system, ECUs for motor control systems, power control systems, and other areas to address the market’s electrification needs.

With the acquisition, Nidec will be able to create new module and systems products by combining Nidec group’s motors, pumps, gears, etc. with OMRON Automotive Electronics’ products including ECUs and other electronics products.

Furthermore, Nidec Elesys and OMRON Automotive Electronics have a complementary relationship in the area of ADAS (Advanced Driver Assistance Systems), creating high expectations for significant synergies.

In particular, Nidec Elesys has strengths in wave radar and camera-related products, while OMRON Automotive Electronics has strengths in laser radar and driver monitoring systems, which will allow two companies to collectively provide a full spectrum of sensors required for autonomous driving in the future.

Following the acquisition, Nidec expects that both companies will cooperate within the Nidec Group to provide a wide variety of sensor products which support autonomous driving technologies.