Acquisition of External Technologies through M&A and Technology Alliances

「By integrating the technologies of our group and SINY, the joint venture will accelerate the development of high-performance, miniaturized products for next-generation optical communications.」

「In December 2024, to deepen the Group's automation technologies and accelerate development, Hangzhou Seiko Giken Co., Ltd., a subsidiary of the company, invested in Suzhou Anzhun Intelligent Equipment Co., Ltd., headquartered in Suzhou, Jiangsu Province, China, which mainly develops and manufactures automation equipment and smart manufacturing equipment.」

「At a meeting of its Board of Directors held on 2 October 2024, the company resolved to acquire all shares of 株式会社エムジー and make it a consolidated subsidiary, and entered into a share transfer agreement dated the same day. It acquired all shares on 25 October 2024. The voting rights ratio acquired was 100%.」

「The main factor was the increase in investment securities resulting from the investment by the consolidated subsidiary Fuji Electronics Industry Co., Ltd. in RADIANT POLYMERS Pvt. Ltd., an Indian automotive parts manufacturer, among other factors.」

「January 2023: Entered into a business alliance with 7Gaa株式会社 in the local 5G-related business.」

「In October 2021, the Hangzhou subsidiary in China established a new company to sell optical connection components to customers in China’s cable television industry, with the aim of strengthening its sales capabilities.」

「Accordingly, while focusing on developing products with an eye to the next generation, the Group is actively pursuing alliances with other companies, including seeking M&A opportunities and forming technology alliances with companies possessing technologies that the Group does not have.」

「The company also explored M&A opportunities and potential business partners in which to invest funds generated by its Growth-Driving Businesses and Profit-Base Businesses.」

「At a meeting of its Board of Directors held on 21 June 2018, the company resolved that its consolidated subsidiary, Hangzhou Seiko Giken Co., Ltd., would jointly invest with an investment company in China to establish a new company for developing and selling optical communications components. As Hangzhou Seiko Giken Co., Ltd.'s investment represents 20% of the total, the new company is an affiliate of Hangzhou Seiko Giken Co., Ltd. The new company began operations in October of this year.」

「② To optimize the business portfolio, our consolidated subsidiary 杭州精工技研有限公司 jointly invested with an investment company in China to establish a new company that develops and sells optical communications components to leading Chinese IT companies. As 杭州精工技研有限公司’s investment ratio is 20% of the total, the new company is an affiliate of 杭州精工技研有限公司. The new company began operations in October this year.」

「At a meeting of our board of directors held on 21 June 2018, we resolved to establish a new company jointly capitalized by our consolidated subsidiary 杭州精工技研有限公司 and an investment company in China to develop and sell optical communications components. As 杭州精工技研有限公司’s investment ratio is 20% of the total, the new company will be an equity-method affiliate of 杭州精工技研有限公司. The new company is scheduled to begin operations in September this year.」

「In April last year, the company acquired additional shares in DATA PIXEL SAS (France), a global leading brand in inspection and measurement equipment for optical communications components, and made it a consolidated subsidiary.」

「Amid increasing demand for optical communications components, the Group acquired additional shares in DATA PIXEL SAS (France), a global leading brand in inspection and measurement equipment for optical communications components, in April of this year and made it a consolidated subsidiary.」

「By making DATA PIXEL SAS a consolidated subsidiary, the Group intends to further share management resources, including technologies and know-how, personnel and personnel networks, production facilities and information. In particular, it plans to deepen cooperation in product development and manufacturing, broaden the products and services offered to customers through synergies created by the two companies, and further expand its share of the global optical communications market.」

「At a meeting of its Board of Directors held on 17 March 2017, the company resolved to acquire additional shares in DATA PIXEL SAS, an equity-method affiliate, and make it a consolidated subsidiary. It entered into a share transfer agreement dated 3 April 2017 and completed the share acquisition on 3 April 2017. The voting rights ratio held immediately before the business combination was 49.0%, the additional voting rights ratio acquired on the business combination date was 48.0%, and the voting rights ratio after the acquisition was 97.0%.」

「Accordingly, while focusing on developing products with an eye to the next generation, the Group is actively pursuing alliances with other companies, including seeking M&A opportunities and forming technology alliances with companies possessing technologies that the Group does not have. However, establishing alliances that generate synergies with other companies possessing attractive technologies may require substantial investment, and intellectual property and personnel issues may arise, meaning that such initiatives may not progress as planned.」

「While focusing on developing products with an eye to the next generation, the Group is actively pursuing alliances with other companies, including seeking M&A opportunities and forming technology alliances with companies possessing technologies that the Group does not have.」