Japanese automobile components maker Nippon Seiki has agreed to acquire the head-up display (HUD) business of automotive components manufacturer Denso.
The transaction encompasses Denso’s HUD development, manufacturing and sales activities in Japan, China, Spain, the US and Mexico.
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Denso’s HUD unit is engaged in developing, manufacturing and selling head-up displays, which project driving-related data – including speed, navigation, fuel levels and traffic signage – onto a vehicle’s windscreen within the driver’s field of vision, removing the need to glance down at the instrument panel.
Nippon Seiki said that integrating Denso’s technology and manufacturing expertise with its own development and production base aims to “further optimise its development and production systems, build a stable global supply framework and strengthen its cost competitiveness”.
Under the terms of the deal, Nippon Seiki will take on production equipment along with the related intellectual property rights.
Denso Group’s officers, staff, land and buildings fall outside the scope of the transaction.
The transfer of customer relationships will take place in phases and will depend on consent from individual customers.
Handover of production sites will occur in stages as Nippon Seiki puts the required infrastructure in place, after which operations will be managed by its own group staff.
During the transition period, Nippon Seiki will arrange for Denso to continue production on an outsourced basis to avoid disruption.
The assets involved in the deal were valued at Y1.16bn ($7.2m) as of 31 March 2026.
Under a confidentiality agreement between the two companies, the purchase price itself has not been made public, though Nippon Seiki has stated it will amount to under 1% of its consolidated net assets for the year ending March 2026, a figure derived from the projected cash flows of the HUD business.
Settlement will be made in cash, drawn from Nippon Seiki’s own funds.
Completion of the acquisition is contingent on approval from Japan’s Fair Trade Commission, along with other necessary regulatory clearances and customer consent, with closing set for 26 February 2027.
