Japan's Nidec Corporation this week agreed to acquire Omron Corporation's automotive electronics business for JPY100bn (US$893m), according to a statement by the company.
Nidec's core business is in the manufacture of precision electric motors, from small units for electronics to motors for automotive applications.
The Kyoto-based company currently makes a broad range of products, from manufacturing equipment and controls, actuators, robots to testing and inspection equipment. The acquisition of Elesys in 2014 significantly strengthened the company's electronics capabilities.
Nidec sees automotive as a key future growth segment and set a target of doubling its revenues in this sector to JPY600bn by 2021.
Its recent focus has been on developing and supplying motors for electric power steering (EPS) systems, electric brake motors and traction motor systems for electric vehicles.
The acquisition of Omron Automotive Electronics will go a long way in helping Nidec achieve its growth targets.
The company makes electronics systems, including remote locking systems, switches, system controls, sensor technologies including laser, radar and driver monitoring systems.
Nidec plans to combine the strengths of the two companies to develop more integrated products and systems and target key automotive growth segments, including a full spectrum of sensors for autonomous driving.
Nidec expects to finalise the acquisition by October of this year.