At a Meeting of the Board held on December 11, 2012, the Board of Executives of Murata Manufacturing Co., Ltd. (hereinafter "Murata") passed a resolution concerning the establishment of a capital and business alliance with Ubiquitous Corporation (Osaka Securities Exchange JASDAQ Code: 3858; hereinafter "Ubiquitous") and subscription to a third-party allocation of treasury shares by Ubiquitous.
Purpose of capital and business alliance
Today, the spread of technologies such as mobile Internet and smartphones is increasing demand for Internet and network connectivity using wireless communication technologies in a variety of devices, and it is predicted that this demand will increase in the future.
Against this social background, Murata has worked to enhance its software development and support in the area of near-field wireless communication modules, and has judged that cooperation with Ubiquitous, a company possessing expertise in the area of software technologies, including OS and middleware, will enable it to supply convenient and high-performance solutions, and thus to further enhance its competitiveness and increase customer satisfaction, and has therefore decided to enter into a capital and business alliance with Ubiquitous in order to strengthen the cooperative relationship between the two companies.
Details of capital and business alliance
(1) Business alliance
The companies will jointly implement the following initiatives in relation to their near-field communication-related products and services:
- Joint proposals and sales promotion activities directed towards mutual customers and potential customers; and
- Joint survey and examination of technological and market trends, etc.
(2) Capital alliance
With December 28, 2012 as the appointed date for payment, Murata will acquire 2,020 treasury shares (constituting 2.32% of the company's total issued shares) from Ubiquitous by third-party allocation, at a price of 51,200 yen per share (representing a total price of approximately 103,424,000 yen) .
Effect on business results
It is considered that the alliance will have a minor effect on Murata's consolidated results in the immediate future.
Corporate overview of Ubiquitous Corporation
| Trade Name: |
Ubiquitous Corporation |
| Location: |
Nittochi Nishi-shinjuku Bldg. 20F, 6-10-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-0023, Japan |
| Representative: |
Kanji Mihara, President |
| Year of establishment: |
2001 |
| Capital: |
566 million yen (as of November 14, 2012) |
| Total Assets: |
2,174 million yen (as of November 14, 2012) |
| Annual Sales: |
915 million yen (consolidated, for the fiscal year ended March 31, 2012) |
| Function: |
Development and sale of software products |
| Number of employees: |
43 (as of June 20, 2012) |
| Accounting period: |
April 1 - March 31 |
Corporate overview of Murata Manufacturing Co., Ltd.
| Location: |
10-1, Higashikotari 1-chome, Nagaokakyo-shi, Kyoto, Japan |
| Representative: |
Tsuneo Murata, President and Statutory Representative Director |
| Year of establishment: |
1950 (originally founded in 1944) |
| Capital: |
69,376 million yen (as of November 12, 2012) |
| Total Assets: |
1,007,393 million yen (as of November 12, 2012) |
| Products: |
Monolithic Ceramic Capacitors, Piezoelectric Products, Communication Modules,Power Supply Modules, etc. |
| Annual Sales: |
584,662 million yen (consolidated, for the fiscal year ended March 31, 2012) |
| Number of employees: |
7,191 (consolidated 37,637) (as of October 31, 2012) |
| Consolidated subsidiaries: |
24 in Japan, 53 overseas |