Nippon Seiki Co., Ltd. (Tokyo: 7287; President: Koichi Sato; headquarters: Nagaoka, Niigata Prefecture) and Alps Alpine Co., Ltd. (Tokyo: 6770; President & CEO: Toshihiro Kuriyama; headquarters: Ota-ku, Tokyo) have entered an agreement on a capital and business alliance centered on next-generation integrated cockpit products with aims to enhance global competitiveness and value for customers.
A major transformation is underway in the automotive industry as demonstrated by the CASE trends of connected cars, autonomous driving, sharing and services, and electrification. Increasingly complex and sophisticated development of products and technologies necessitates mutually complementary partnerships between industry players.
In response to these challenges and customer needs, Nippon Seiki and Alps Alpine have decided to apply their respective technological and product strengths to joint activities involving product development centered on next-generation integrated cockpits. Through fusion of products and technologies, such as Nippon Seiki’s head-up displays (HUD) and instruments and Alps Alpine’s human-machine interfaces (HMI) and infotainment systems, as well as the latter’s system integration expertise, the companies aim to speed up development of integrated cockpit products that are also compatible with integration of onboard electronic control units (ECU) and work to create new value, delivering a user experience that accurately captures the future.
The companies plan to sell jointly developed cockpit-related products within their own respective lineups, gaining the agreement of customers.
Nippon Seiki and Alps Alpine will initially share their respective strengths in joint development and proceed to explore options allowing them to fully draw on synergies in wide-ranging areas, such as harnessing scale advantages in purchasing and realizing mutual supply of each company’s products. To strengthen the ties between the two companies with a view to ongoing cooperation and mutual advancement, they will enter a capital alliance involving reciprocal acquisition of the other party’s shares.
Details of the Business Alliance
With
aims to enhance global competitiveness and value for customers, the two
companies will carry out joint development of agreed-upon themes
centering on system products integrating Nippon Seiki’s products and
Alps Alpine’s automotive equipment, as well as other joint development
relating to agreed-upon themes within CASE domains. Collaboration in
production and purchasing activities may also be explored depending on
how the alliance progresses.
Details of the Capital Alliance
To
develop and strengthen the partnership between the two companies over
the long term, the companies will each acquire shares of the other
party, as detailed below, pursuant to the agreement reached.
Nippon Seiki will acquire 2,600,000 shares of Alps Alpine (1.18% of all issued shares for a total value of \3.73 billion) through the disposal of treasury stock by Alps Alpine by way of third-party allotment.
Alps Alpine will acquire, for the same value, 3,000,000 ordinary shares of Nippon Seiki (4.93% of all issued shares for a total value of \3.63 billion) through the disposal of treasury stock by Nippon Seiki by way of third-party allotment.
The two companies will allocate proceeds from disposal of treasury stock by third-party allotment to cover some of the funds required by both sides for development relating to integrated cockpit products.