Alps Electric Co., Ltd. (Ota-ku, Tokyo; President: Toshihiro Kuriyama) has signed a share transfer agreement with Innovation Network Corporation of Japan (INCJ; Chiyoda-ku, Tokyo; President Mikihide Katsumata) and has today acquired all INCJ-held shares of Alps Green Devices Co., Ltd. (AGD; Ota-ku, Tokyo; President : Motohiro Shimaoka). AGD becomes a wholly owned subsidiary of Alps Electric as a result.
Alps Electric established AGD on May 17, 2010, by spinning off its magnetic materials and thin film process technology development operations with the help of an INCJ investment. The purpose of the new company was to develop, manufacture and sell compact, high-efficiency power conversion and control devices that will enable the creation of a low-carbon society. AGD has so far engaged in development and commercialization of power electronics products.
Since its establishment, AGD has successively developed and launched such products as power inductors making use of proprietary material Liqualloy™ and current sensors integrating magnetic materials and thin film process technology. The company has already achieved some degree of success on the market, for example by contributing to low power consumption by smartphones and PCs as well as power usage visualization inside distribution boards.
Meanwhile, Alps Electric has made targeting the energy market a priority theme. While advancing development of sensor varieties and communication modules, the company is making efforts to shift the energy-related business into full gear, as illustrated by its commercialization of power conversion modules integrating AGD-developed toroidal coils and current sensors.
Alps Electric is also continuing efforts to generate and enhance open innovation and synergies relating to magnetic materials and thin film process technology and is actively pursuing commercialization of those technologies in the energy market. For example, Tohoku Magnet Institute Co., Ltd. (TMI; Sendai, Miyagi Prefecture; President: Munemitsu Abe) was established on November 5, 2015, with the aim of commercializing a magnetic material developed by Tohoku University. Alps Electric invested in the joint venture along with Tohoku University Venture Partners Co., Ltd. (Sendai, Miyagi Prefecture; Tetsuji Yanami) and others and has currently set out to develop devices applying the material.
In light of these developments, Alps Electric has acquired all AGD shares held by INCJ to make AGD a wholly owned subsidiary and thereby strengthen links between AGD’s business and Alps Electric’s power electronics business. Together with efforts to generate and enhance open innovation and synergies through the TMI joint venture, Alps Electric aims to realize a more dynamic, diversified style of operations that will accelerate the strengthening of a foundation for the energy market and the pace of business.
The impact of the acquisition of shares on consolidated financial performance for the fiscal year ending March 31, 2017, is expected to be minimal.