OMRON Corporation has completed its previously announced acquisition of 100% of the shares of Scientific Technologies Incorporated (STI) for a purchase price of US$94 million. The terms of the transaction were approved by the US Securities and Exchange Commission (SEC) on August 24, 2006, and at an extraordinary meeting of STI shareholders held on September 12, 2006. STI's shares were acquired by Omron Management Center of America Incorporated, a wholly owned subsidiary of Omron Corporation, and the newly acquired company has been renamed Omron Scientific Technologies Incorporated (OSTI).
As a result this acquisition, Omron becomes the number one player in the 110 billion yen (approx. US$940 million) global safety device market, which is predicted to grow 15% per year backed by a rising trend for corporate social responsibility that stresses not only improved productivity but also workplace safety.
In line with the automation and globalization of production processes, manufacturers have increased their focus on safety, quality and the environment. Omron, as a primary supplier to industrial workplaces, has responded accordingly. In April of last year, Omron established a dedicated safety devices division. Omron enhanced its safety devices lineup of components and networks, and boosted its system solutions capabilities and safety-design consulting services. Now, having completed this latest acquisition, Omron plans on growing its safety business aggressively, aiming to achieve a three-fold increase in sales from 10 billion yen (US$85 million) in fiscal year 2005 to 30 billion yen (US$255 million) by fiscal year 2008.
STI's products include a wide range of components for safety light curtains, laser scanners, and other safety devices and services, and the company has developed strengths across multiple sectors including the automotive, semiconductor, electronic devices, food processing, chemicals and cosmetics industries.