Nikon diversifies from digital cameras to medical imaging
Retinal imaging market estimated to grow to US$ 530 million in 2019
Currently 70% of Nikon’s business are digital camera, a rapidly shrinking market due to the popularity of smartphone cameras.
Inspired by SONY‘s investment in medical imaging company Olympus, Nikon diversifies from digital cameras into medical imaging, acquiring the Scottish retinal imaging company Optos plc – “The retina company”.
Nikon is reported to have approached Optos plc in December 2014, but seems to have been rejected.
On February 27, 2015, NIKON Corporation and Optos plc jointly announced the agreement for a recommended cash offer my by NIKON for the entire issued and to be issued share capital of Optos. Details can be found on NIKON’s official website for the Optos offer, where NIKON essentially offers a total of UKL 250.48 million (US$ 387 million) for all shares of Optos.
Optos plc was founded by Douglas Anderson in 1992 after his son became blind on one eye, because his retina detachment was diagnosed too late.
Optos plc had IPO on the London Stock Exchange in February 2006. Market capitalization on February 27, 2015 was UKL 250.48 million (US$ 387 million), jumping from approx. UKL 191 million (US$ 295 million) on February 26, 2015.
Optos has a market share of about 30% of the global market for retinal imaging. The global market size of devices for retinal imaging is growing and estimated to become US$ 530 million in 2019.
e-shelter facility services GmbH was founded in 2000, and offers 90,000 square meters of data center space in 9 locations across Germany, Switzerland and Austria.
NTT Communications was created with the privatization of NTT, which is formerly was Japan’s domestic monopoly telecommunications operator (KDD was had the monopoly for overseas telecommunications from Japan).
NTT Communications started globalization with the acquisition of US internet access, hosting and service provider VERIO for a approximately US$ 5.5 billion, announced on May 8, 2000.
acquire the rail business of AnsaldoBreda S.p.A. (with some exceptions) for € 36 million (US$ 41 million), and
to acquire Finmeccanica’s 40% holding in the rail signaling and rail systems company Ansaldo STS S.p.A. for € 773 million (approx. US$ 880 million)
Hitachi is expected to be required to launch a tender offer for all remaining shares of Ansaldo STS S.p.A. and if successful, will acquire all of Ansaldo STS S.p.A..
Hitachi is generally considered as one of Japan’s most important and most representative companies. Hitachi was founded in 1910 bei Namihei Odaira, and produced Japan’s first electrical motors. (For a detailed analysis of Hitachi and Japan’s electronics industry, read our report “Japan electronics industries: mono zukuri“.
While Hitachi grew into a conglomerate with a large number of different business areas, during the 15 years 1997-2012, Hitachi grew with an annual compound growth rate of only 0.48%, and during the period 1997-2012 suffered average annual net losses of YEN 45 billion (US$ 0.45 billion) per year. This difficult business situation is characteristic of Japan’s electronics industry overall, as discussed in our report “Japan electronics industries: mono zukuri“. One reason for this difficult situation is the so-called “Galapagos Effect“.
Indeed, Hitachi’s “Chief Transformation Officer” (CTrO) explained recently, that it is only in 2011/2012 that Hitachi started to benchmark important business performance data (eg. operating margin, R&D expenditure, administrative expenses, cost of sales etc) internationally. Until 2011/2012 Hitachi had only compared performance data with other Japanese companies such as Toshiba.
In April 2010, Hiroaki Nakanishi was appointed President of Hitachi, and he started the “Hitachi Smart Transformation Project” with the aim to rebuild a strong Hitachi into a truly global company. (You can find an overview of Hitachi’s Smart Transformation Project in our report: “Japan electronics industries: mono zukuri“).
Hitachi has great strengths in rail engineering, and the acquisitions of AnsaldoBreda and Ansaldo STS are an implementation of Hitachi’s Smart Transformation Project.
Other recent acquisitions and investments by Hitachi in the railway engineering field include:
AnsaldoBreda S.p.A. was formed in 2001 by the merger of the companies Ansaldo Trasporti and Breda Costruzioni Ferroviarie, and employs about 2400 employees.
Gio. Ansaldo & C. was founded in 1853 in Genoa to manufacture steam engines, steam locomotives, rail rolling stock.
Ing. Ernesto Breda and C. was founded in 1886, and became Societa Italiana Ernesto Breda (SIEB) in 1899.
Ansaldo STS S.p.A. is a manufacturer of rail signaling and transportation systems, and was founded in 2006 by the merger of a number of railway engineering companies, including:
US Union Switch & Signal (US&S), founded by George Westinghouse in 1881 in Pittsburgh, USA.
Compagnie des Signaux pour Chemins de fer (CSE), founded by Fernand Cumont in 1902, which built the first lines of the Paris Metro. Later renamed Company and Business Electrical Signals (CSEE)
40% of Ansaldo STS S.p.A.‘s shares are owned by Finmeccanica S.p.A. and Finmeccanica has now agreed to sell these 40% of shares to Hitachi. The remaining 60% are traded on the Borsa Italiana, and it is reported that Hitachi will be required to launch an offer to purchase all remaining 60% of shares following the acquisition of 40% from Finmeccanica.
Finmeccanica S.p.A. is an Italian industrial group, founded in 1948. As of 23 December 2014, 32.45% of Finmeccanica shares are owned by the Italian Ministry of Economy and Finance.
With the sale of the railway businesses, Finmeccanica will focus on aerospace, defense and security core business.
Sosei Group acquires candidate drugs to compensate for expected loss of patent protection for the Seebri inhaler in 2026
Heptares Therapeutics Ltd emerged from the MRC Laboratory of Molecular Biology at the University of Cambridge
Sosei Group Corporation (そーせいグループ株式会社) is a Japanese pharmaceutical group which mainly in-licenses pharmaceutica in Europe and North America, then brings these pharmaceutica to Proof-of-Principle stage in Japan, and consecutively out-licenses these pharmaceutica for further development and marketing.
In 2026, Sosei is expected to lose patent protection for its Seebri inhaler, and to compensate for this expected loss in revenues, Sosei acquired the Cambridge (UK) based Heptares Therapeutics Ltd for up to US$ 400 million (US$ 180 million in cash plus up to US$ 220 million in incentives if certain milestones are reached).
Heptares Therapeutics Ltd creates novel pharmaceutica targeting G protein-coupled receptors (GPCRs) using its StaR drug design technology.
Heptares Therapeutics Ltd started based on the research by Richard Henderson and Christopher Tate a the MRC Laboratory of Molecular Biology at the University of Cambridge (UK).
Heptares Therapeutics Ltd previously was funded by a consortium including MVM International Life Science Capital Management, Clarus Lifescience II LP, Novartis Bioventures Ltd., Takeda Ventures Inc. and the Stanley Family Foundation.
Sosei Group Corporation (そーせいグループ株式会社) was founded on June 22, 1990 with the main purpose to in-license pharmaceutica in the European and North American markets, to develop these pharmaceutica to the point of Proof-of-Principle (POP) in Phase 2a, and then to out-license these pharmaca for further development and marketing in Japan.
Holding Company: Sosei Group Corporation (そーせいグループ株式会社) (Tokyo and London, UK)
Sosei Co. Ltd.(株式会社そーせい) (Tokyo): pharmaceutical development and sales, business development in Japan
Sosei R&D Ltd. (London, UK): licensing and business development outside Japan
Activus Pharma Co., Ltd.(株式会社アクティバスファーマ) (Chiba, Japan): pharmaceutical development based on nano technology (APNT = Activus Pure Nano-particle Technology)
Jitsubo Co., Ltd. (JITSUBO株式会社)（Tokyo): development of peptide drugs, licensing of peptide API manufacturing technology, research related to discovery of peptide drug candidates. Acquired on December 11, 2014. Jitsubo KK was established in April 2005 by Professor Kazuhiro Chiba of the United Graduate School of Agricultural Science, Tokyo University of Agriculture and Technology. Sosei Group acquired 68.7% of voting rights for YEN 421 million (US$ 3.5 million)
On June 13, 2012, Rakuten acquired Spanish online streaming video-on-demand (VOD) provider Wuaki.tv.
Wuaki.tv – slogan: Your online video service
Wuaki.tv was founded 2009 in Barcelona by current CEO Jacinto Roca.
Wuaki.tv is funded by Bonsai Capital, Axon Capital, and Marc Ingla, former Vice-President of the football club “Futbol Club Barcelona”.
Wuaki.tv offers on-demand internet rental streaming video / media based on content distribution agreements with major Hollywood studies, local studies, and partnership agreements with TV and other device manufacturers. Download or storage is currently not supported.
“rental” is typically for unlimited viewing within a 48 hours rental period
“buying” typically allows unlimited viewing for a period of 3 years or longer
“Season Pass” available for some TV series
Wuaki.tv about Wuaki.tv: “We offer the latest Hollywood blockbusters, the most popular TV series, and the best films from independent filmmakers. All this, easily accessible from your computer, Smart TV, tablet, phone and gaming console.” (from the Wuaki.tv website)
Subscribers:
Spain: 600,000
Andorra:
United Kingdom: 400,000 (December 2014), started in July 2013 at an introductory price of UKL 2.99/month (to be raised to UKL 5.99)
France: (start on September 15, 2014 with a soft-launch for 10,000 users). Rakuten is planning to leverage PriceMinister’s 20 million members
Total: 1.85 million (December 2014)
Wuaki.tv is reported to enter Italy, Germany and 12 more markets in the near future.
Platforms:
Android
Chromecast
iPad
PC (with Adobe Flash Player (version 10 or higher) installed)
Mac (with Adobe Flash Player (version 10 or higher) installed)
Largest global SAP reseller and one of the largest SAP solution providers
On 23 October 2007, NTT DATA, NTT DATA Europe and itelligence AG announced a partnership, and NTT DATA announced to intention of an offer to acquire the shares at € 6.20 per share, about 37.2% higher than the closing price as of 22 October 2007.
On 13 November 2007, NTT DATA Europe published an offer to acquire outstanding shares. This offer ended at midnight on 2 January 2008, and NTT DATA Europe acquired 20,974,169 (= 87%) of outstanding shares, corresponding to an acquisition value of € 130 million, and a total company valuation of € 149.5 million.
On 29 January 2008, NTT DATA sold 2,459,523 shares to NTT Communications Corporation for € 15 million corresponding to € 6.10 per share, leaving NTT DATA with 18,514,646 shares.
On 20 December 2012, NTT DATA Europe announced that it had acquired an additional 3,831,574 shares (= 12.77%) in another tender offer, and an additional 1,317,605 shares (= 4.39%) outside this offer. As a result, NTT DATA holds a total of 29,544,428 shares (= 98.43%). Following this tender offer, NTT DATA proposed a “squeeze out” (aktienrechtlicher Squeeze-out) under the German Stock Corporation Act to acquire the remaining outstanding shares.
On 23 May 2013, the Annual General Meeting of itelligence AG approved the squeeze-out of remaining minority shareholders at a cash compensation of € 10.80 per share.
itelligence AG was delisted from the Stock Exchange in June 2013.
Thus itelligence AG on 23 May 2013 became a 100% owned subsidiary of NTT DATA Europe GmbH & Co KG, but will continue to operate as an independent group within the NTT DATA Group.
NTT DATA Business Solutions
In 2012 itelligence AG added to co-branding NTT DATA Business Solutions
itelligence AG “We make the most of SAP solutions!”
itelligence AG is a SAP solution provider.
Company history:
1989 Herbert Vogel and Wolfgang Schmidt founded S&P as a management consulting firm focused on introducing SAP. S&P was one of SAP’s first partner companies.
1994 S&P was converted into “SVP GmbH” (Schmidt Vogel & Partner)
1999 SVP GmbH was converted into SVC AG (Schmidt Vogel Consulting) and listed in an IPO
On 7 May 2001, the shareholders of SVC AG Schmidt Vogel Consulting agreed in the merger with APCON AG, forming itelligence AG
On 23 October 2007, itelligence AG entered into a partnership with NTT DATA
On 23 May 2013 itelligence AG became a 100% owned subsidiary of NTT DATA and the shares of itelligence AG were delisted
itelligence AG acquisitions
itelligence AG (and therefore NTT DATA via itelligence) has acquired a number of companies in the SAP solutions field:
2008: acquires shareholding in SAPCON a.s.
2009: ADELANTE SAS: On 19 March 2010 intelligence acquired 51% of ADELANTE SAS.
2009: Chelford SAP Solutions: on 6 August 2010, itelligence AG acquired 100% of Chelford SAP Solutions
2009: acquires RPF Consulting LLC
2009: acquires participation in 2B Interactive
2010: 2C Change A/S: on 14 June 2011, itelligence AG acquired 60% of 2C change A/S and an option to acquire the remaining 40%
Managed Security Services (MSS): Greschitz IT Security and Secode AB join NTT Com Security AG
On June 30, 2009, NTT Communications announced a public tender offer for the shares of Integralis AG offering € 6.75 in cash per share. Integralis at that point was traded on the Frankfurt Stock Exchange (Xetra).
In October NTT Communications acquired 78.4% of Integralis AG at a cost of € 59.1 million, to offer managed security services.
Integralis AG
The company was founded on 19 July 1993 as “Articon Fertigungsleitsysteme GmbH”, Articon Information Systems AG had IPO on the German Neuer Markt in 1998.
Integralis Ltd was founded in 1989.
On 29 February 2000, Articon Fertigungsleitsysteme GmbH and Integralis Ltd merged, and the resulting company was Articon-Integralis AG.
NTT Com Security AG is a listed company, and the company’s shares are traded in the m:access segment of the open market of the Munich Stock Exchange. There are 13,036,844 outstanding shares.
NTT Com Security AG / Integralis acquires Austrian Greschitz IT Security
Thomas Greschitz founded Greschitz IT Security 1995 to focus on internet security, in particular Check Point firewall systems in Graz. 2000 the company moved from Graz to Vienna.
On August 11, 2010, NTT Communications Corporation announced the acquisition of all shares of Secode AB, a managed security services (MSS) provider operating in the Nordic countries. Secode AB’s security operation centers (SOCs) were folded into NTT Communications network of SOCs.
On December 1, 2011, NTT Communications transferred the shareholding in Secode AB to Integralis AG (today’s NTT Com Security AG), making Secode AB a fully owned subsidiary or Integralis AG (Today NTT Com Security AG).
globalizing Docomo’s mobile payment and content services
bringing German mobile know-how to Japan
On September 11, 2009, NTT Docomo announced a voluntary public tender offer for shares of net mobile AG. The tender offer was closed on November 27, 2009, and Docomo Deutschland GmbH acquired 6,126,567 shares at € 6.35 per share corresponding to 79.59% of the company, at a total acquisition cost of € 38.9 million, thus valuing net mobile AG at € 48.9 million.
Acquisition of Bankverein Werther AG to create Net-m Privatbank 1891 AG
On September 22, 2011, NTT Docomo announced the additional investment of up to € 28.4 million (YEN 3.1 billion) in net mobile AG, for the purpose of net mobile AG acquiring Bankverein Werther AG.
The company goes back to the foundation of the financial cooperative “Vorschussverein zu Werther”, which was founded in 1877 in Werther, near Bielefeld in Germany. In 1891, the Vorschussverein zu Werther was transformed into the bank “Bankverein Werther Aktiengesellschaft”. During 2011, Net Mobile AG acquired 93% of shares of Bankverein Werther AG. On December 1, 2011, the traditional banking business, including the trademark “Bankverein Werther” was sold to the regional bank “Volksbank Paderborn-Höxter-Detmold eG“.
With the sale of the traditional banking business and the tradename and brand, the bank reentered the market as Net-m Privatbank 1891 AG. At the end of 2012, Net Mobile AG acquired all remaining shares, so that Net-m Privatbank 1891 AG became a 100% owned subsidiary of net mobile AG.
net mobile AG
net mobile AG was founded on 9 October 2000 in Köln, and headquarters later the same year moved to Düsseldorf (Handelsregister/trade registry No. HRB 48022). In 2001, Net Mobile AG acquired SMS Infowelt. net mobile AG’s business at that time was marking info-SMS, ringing tunes, and other information services for mobile phones.
net mobile AG is a public company, traded at the Frankfurt and München Stock Exchanges (Freiverkehr).
Currently the market cap of net mobile AG is € 77 million (US$ 94 million).
Toray acquires Saati’s European fabric business: Toray builds integrated supply chain in Europe
Toray management program Project AP-G 2016: “thorough implementation of growth strategy through innovation and aggressive management”
Toray acquires Saati’s European fabric business: Toray announced on 10 December 2014 the agreement to acquire the European carbon fiber fabric and prepreg business of Saati SpA. Toray will take over Saati’s plant located in Legnano (Milano Province) in January 2015, renaming the operations “Composite Materials (Italy) Srl (CIT)” and to become a fully owned subsidiary of Toray.
Saati will continue to own and operate the Saati composite business in America.
Saati SpA
SAATI SpA was founded in 1935 to manufacture silk flour mesh fabrics, and employs about 850 people.
Consolidated net sales: YEN 2.3 trillion (US$ 23 billion)
Consolidated operating income: YEN 180 billion (US$ 1.8 billion)
ROA 8%
ROE 10%
Toray’s long term vision “AP-Growth TORAY 2020“: become “a global top company of advanced materials”
AP-Growth TORAY 2020 is a unified growth map for the next 10 years based on Toray’s corporate vision of “contributing to society through the creation of new value with innovative ideas, technologies and products”.
Key KPI’s for AP-Growth TORAY 2020 (to be achieved around 2020)
consolidated net sales: YEN 3 trillion (US$ 30 billion)
Consolidated operating income: YEN 300 billion (US$ 3 billion)
Operating income margin: 10%
ROA: 10%
ROE: 13%
Toray Industries, Inc. (東レ株式会社) “Innovation by chemistry” (化学による革新と創造) (TSE 3402, LSE TKK)
Toray Industries, Inc. (東レ株式会社) was founded on 12 January 1926 with an investment by Mitsui Bussan. The company was incorporated as Touyou Rayon (東洋レーヨン) on 16 April 1926.
In 1970 the company name was changed to Toray KK (東レ株式会社). Toray is the abbreviation of Touyou Rayon (東洋レーヨン).
Toray’s main business are:
fibers and textiles
plastics and chemicals
IT related products: films, color filters, products for IC production, graphics materials
carbon fiber composites
environment and engineering: water treatment membranes, materials for housing, environmental equipment
Axpo Kompogas Engineering AG (Komeng) is an EPC (engineering, planning, construction) company planning and constructing dry fermentation plants using the Kompogas process, which produces biogas and compost from biomass via a dry fermentation process.
Address: Flughofstrasse 54, CH-8152 Glattbrugg, Switzerland
CEO: Bernard C. Fenner
Business: EPC (engineering, procurement, construction) and maintenance of Kompogas plants
Established: 2013
Capital: approximately SFR 3.6 million (YEN 425 million)
Kompogas method generates biogas by methane fermentation from kitchen and other organic waste
The Kompogas process was developed about 1988-1989 by the Swiss entrepreneur Walter Schmid initially on his private balcony.
The Kompogas process produces biogas and compost from biological, organic waste via a fermentation process. The resulting biogas can be used for cars and trucks, and the compost as organic fertilizer.
AXPO is an electricity operator, generating, distributing, selling and trading electricity, and is fully owned by cantons of north-eastern Switzerland.
Hitachi Zosen Inova AG (HZI AG) was created when Hitachi Zosen acquired AE&E Inova Holding AG on December 20, 2010, after it filed for bankruptcy in Zurich on December 3, 2010, read details here.
AE&E Inova Holding AG goes back to a department for thermal waste management of the Gesellschaft der Ludwig von Roll’schen Eisenwerke which was founded in 1823.
Standardkessel (founded 1925) and Baumgarte (founded 1935) started as classic boilermakers, and today supply turnkey power plants and power plant components for fossil energy sources, e.g coal, gas and oil, and also for alternative energy carriers, e.g. biomass, municipal waste, and industrial waste.
Standardkessel Power Systems Holding GmbH is a holding company owning 100% of the shares in the Standardkessel Baumgarte Group, which consists of:
Standardkessel GmbH (founded 1925)
Baumgarte GmbH (founded 1935)
Standardkessel Baumgarte Service Holding GmbH (founded 2008)
Standardkessel-Baumgarte were founded as classic boiler makers, and developed into makers of biomass and waste-to-energy power plant suppliers and service group.
By acquiring Standardkessel-Baumgarte, JFE Engineering can strengthen overseas business, accelerate globalization and move into the biomass and waste-to-energy electricity and power generation sector.
Japanese companies’ strategy to overcome cultural post-merger problems: European subsidiaries acquire
Heraeus Kulzer acquires EGS, expanding both Mitsui Chemicals’ foot print in Europe and global market penetration for Mitsui Chemicals’ dental supplies business
Japanese companies are well known to have substantial difficulties with post merger integration as a consequence of massive cultural differences which need to be overcome for successful acquisitions. One way to mitigate these difficulties is for Japanese companies to acquire a substantial European company, make this acquisition a success, and then acquire additional companies via this first successfully integrated subsidiary. One example for this path is Dentsu with its Aegis acquisition, see: Dentsu acquires Aegis. Subsequently, Aegis acquires a string of companies all over Europe for Dentsu.
Mitsui Chemicals follows a similar strategy by first acquiring Heraeus Kulzer, which then again acquires the CAD/CAM specialist Enhanced Geometry Solutions, EGS Srl.
Enhanced Geometry Solutions, EGS Srl, makes 3D scanners, CAD software, and digital tools for scanning, modeling, designing workflow in dental laboratories.
As part of the restructuring efforts, Panasonic invests in Spanish car parts maker Ficosa in order to jointly develop Panasonic self-driving car technology.
We have documented in our blogs and reports on Japan’s electronics industry how Japan’s electronics giants lost their global dominating advantages as TVs and other electronics products became commodities, and Japanese electronics makers were blind sided by Apple, Samsung and many other faster innovators. Japanese electronics companies including Panasonic were slow to recognize that their market leading positions were rapidly melting away, and were slow to change.
As part of the restructuring efforts, Panasonic sold several semiconductor fabs to Tower-Jazz, and in a move into car parts, Panasonic invests about US$ 275 million to acquire an approximately 50% stake in the Barcelona based Spanish car parts maker Ficosa International, in order to jointly develop self-driving car technology.
Ficosa had acquired the Sony Barcelona Technology Center
The Switch Engineering Oy was valued US$ 265 million in 2011
Trend: Japanese companies acquire European renewable energy technology companies
On July 2, 2014 Yaskawa Electric Corporation acquired all shares of The Switch Engineering Oy, which are not owned by the Switch. The acquisition price was not announced, however, AMSC in 2011 had agreed and later cancelled to acquire The Switch for US$ 265 million. Therefore we can expect the acquisition price to be at least of this order if not much higher.
Vacon plc held approx. 14% of The Switch directly and another approx. 5% through the investment fund Power Fund I. On July 1, 2014, Vacon plc sold all these shares to Yaskawa Electric Corporation.
Finnish Industry Investment sold a holding of The Switch to Yaskawa.
The Switch Engineering Oy “Bringing you power”
The Switch Engineering Oy makes permanent magnet generators (PMG) and full-power converters (FPC) for wind turbines (1 MW – 8 MW and higher), marine applications and other industrial applications.
The Switch was founded in 1996, and in 2013 reported sales of € 46.2 million (US$ 53 million), and employed 175 people. The Switch headquarters are in Vantaa, Finland.
The Switch Engineering Oy was valued US$ 265 million in 2011
On March 14, 2011, American Superconductor Corporation AMSC signed a definitive agreement to acquire The Switch for US$ 265 million. However, on October 31, 2011, AMSC announced the cancellation of this agreed acquisition and paid € 14.2 million as break-up fee, a sum which had already been paid as an advanced payment of the acquisition price.
Yaskawa Electric Corporation (株式会社 安川電機)
Yaskawa Electric Corporation was founded on July 16, 1915, and headquarters are in Kitakyushu in the West of Japan.
Sales by business segment (FY2014: Fiscal year ended March 2015)
Motion control: YEN 188.1 billion (US$ 1.571) 47%
Robotics: YEN 136.0 billion (US$ 1.136 billion) 34%
System Engineering: YEN 41.0 billion (US$ 0.342 billion) 10%
NuGeneration becomes a joint-venture between Toshiba (60%) and GDF Suez (40%)
In December 2013, Toshiba purchased 50% of NuGeneration Ltd from Iberdrola (of Spain) for UKL 85 million (US$ 146 million).
On June 30, 2014, Toshiba announced to purchase an additional 10% of NuGeneration Ltd from GDF Suez.
Thus, NuGeneration becomes a joint-venture between Toshiba (owning 60% of NuGeneration) and GDF Suez (owning 40% of NuGeneration).
NuGeneration Ltd (NuGen)
NuGeneration Ltd. (NuGen) owns an option to purchase the 190 hectare Moorside site, located to the north of Sellafield, from the UK Nuclear Decommissioning Agency.
NuGeneration plans to build a 3.4 GigaWatt nuclear power station using three AP1000 reactors built by Westinghouse. Westinghouse is owned by Toshiba (87%), by Kazakhstan based Uranium and nuclear fuel producer KazAtomProm (10%) and the Japanese engineering company IHI (3%).
When finished, NuGeneration’s Moorside nuclear power plant is expected to deliver about 7% of UK’s electricity.
Two factors drive Toshiba to acquire a majority holding of NuGeneration (NuGen):
Canon acquires video surveillance specialist Milestone Systems A/S in June 2014
Milestone Systems A/S is a leading IP based video management software (VMS) and network video recorder (NVR) provider for video surveillance
Milestone System was founded in 1998 to apply IP technology from the financial sector to the surveillance video sector, which had previously been predominantly analogue.
10 July 2008, Index Ventures announced an investment of $27 million (17 million Euros) into Milestone Systems.
IHD estimates that the video surveillance market size is on the order of US$ 13 billion, while Milestone Systems A/S is estimated to have an 8% market share.
Founded in 1998 by Henrik Friborg and John Blem by applying their knowledge of IP technology for real-time financial systems to digital video surveillance, replacing previously mainly analogue recording techniques.
In June 2014 Milestone Systems A/S was acquired by Canon, reports to Canon Europe, but works as a stand-alone company.
Revenues: DKK 709 million (= US$ 110 million) (2016)
Operating incomee: DKK 121 million (= US$ 19 million) (2016)
Net income: DKK 42 million (= US$ 6.5 million) (2016)
Employees: 600 (2015)
Following acquisition of Adometry by Google and of Convertro by AOL
On May 28, 2014, Rakuten Marketing announced the acquisition of the Brighton (UK) based marketing attribution specialist DC Storm.
Although terms of the acquisition were not disclosed, Google on May 6, 2014 acquired Adometry for about US$ 150 million, and AOL on the same day acquired Convertro for US$ 101 million. Therefore we assume that Rakuten Marketing probably also paid on the order of US$ 100 million for DC Storm.
Marketing attribution: measuring return (ROI) on marketing investment
Marketing attribution has its origin in the work of Austrian psychologist Fritz Heider‘s work on Attribution Theory, and his seminal work “The Psychology of Interpersonal Relations” of 1958.
Attribution is the process by which people explain the causes for actions, and models for these processes (source: Wikipedia).
Marketing attribution develops understanding of which combination of events leads individuals to take particular actions, e.g. to conclude a purchase for example (source: Wikipedia Attribution (marketing))
Marketing attribution specialist companies have recently been very popular acquisition targets:
Convertro (about 60 employees) acquired by AOL for US$ 101 million, announced on May 6, 2014
Adometry (about 130 employees) acquired by Google for an estimated US$ 150 million, announced on May 6, 2014
DC Storm acquired by Rakuten Marketing, announced on May 28, 2014
DC Storm is headquartered at Brighton, UK, with offices in US and in Germany. DC Storm was founded in 2004 by current CEO, Seth Richardson, who designed and coded the initial versions of DC Storm’s digital marketing analysis platform.
DC Storm offers digital marketing companies attribution tools, analysis and consulting services, and tag management.
Floating Production, Storage and Offloading (“FPSO”) systems
Engineering business related to electrical equipment (transformer substation, power distribution, drive systems, and lighting equipment, etc.) needed to operate machinery, and measurement equipment (sensors, etc.) and to control plant systems
On March 4, 2014 Dentsu announced further European investments in its quest to strengthen its global footprint: Dentsu acquires French mobile marketing agency Lesmobilizers SAS.
Lesmobilizers SAS – Mobile Applications Creators
Lesmobilizers SAS are a dedicated agency in design and development of mobile applications. The company was founded in March 2010 in Paris, France, and employees about 10 people.
In the year ending December 2012, gross profits were about EURO 0.8 million.
Dentsu and Dentsu-Aegis
Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.
LIXIL (“Link to Good Living”) pursues strategy to become global leader in building materials and housing equipment industry
LIXIL acquires 87.5% of German GROHE Group (“Pure Freude an Wasser”), valuing GROHE at € 3.06 billion
Lixil Corporation follows the strategy to become the global leader in building materials and housing equipment, and on January 21, 2014, together with the Development Bank of Japan, acquired 87.5% of the German GROHE Group. The shares were acquired from Glacier Luxembourg One Sarl, which is indirectly owned by TPG Capital (formerly Texas Pacific Group) and DLJ Merchant Banking Partners (“DLJ MBP”), an affiliate of Credit Suisse and traces its roots to Donaldson, Lufkin & Jenrette.
The acquisition deal structure is quite complex. Voting rights are split 50%/50% between Lixil and Development Bank of Japan (DBJ), Lixil uses YEN 160 billion of non-recourse loans. Lixil has a call option on DBJ share ownership, allowing Lixil to acquire all of Grohe.
Lixil’s advisors:
Financial advisors: SMBC Nikko Securities, BNP Paribas, Development Bank of Japan (DBJ), Moelis
Lixil Corporation (“Link to Good Living”), TSE-Code 5938, manufactures building materials and housing equipment and operates home and home building centers. To become global leaders in these fields, LIXIL has recently acquired:
American Standard, in August 2013 for US$ 542 million
American Standard Asia Pacific, in August 2009
Permasteelisa Group, in 2011
Shanghai Meite Curtain Wall System in 2011
LG-TOSTEM, strategic alliance formed in 2010
Haier-LIXIL, strategic alliance formed in 2011
LIXIL was formed on April 1, 2011 by the merger of:
Tostem Corporation
Inax Corporation
Shin Nikkei Company, Ltd.
Toyo Exterior Co., Ltd.
Sun Wave Corporation
and has been growing aggressively through acquisitions with the target to achieve 50% sales internationally outside Japan.
On January 20, 2014 Dentsu announced further European investments in its quest to strengthen its global footprint: Dentsu acquires Poland’s social media agency Socializer
Socializer SA
Socializer SA was founded in Warsaw, Poland, in March 2011, earned gross profits of UKL 1.7 million in the financial year ended December 2012, and employs about 130 people.
Socializer provider advertising and communications services using Social Media (SNS).
Dentsu and Dentsu-Aegis
Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.
Japanese insurance SOMPO part of NKSJ Holdings acquires UK reinsurer Canopius Group from Bregal Capital
In order to globalize, Japanese insurance company Sompo Japan (株式会社損害保険ジャパン), part of the insurance group NKSJ Holdings (NKSJホールディングス株式会社, TSE / JPX: No. 8630) announced yesterday the acquisition of 100% of the UK re-insurer Canopius Group Limited, operating on Lloyd’s for UKL 594 million (US$ 972 million), from the current owners. Current majority owner of Canopius is Bregal Capital.
Canopius will keep the brand, company name, and management team.
Canopius: one of the top ten insurers on the Lloyd’s market
Canopius, is an insurance group, one of the top ten insurers in the Lloyd’s market, was founded in December 2003, almost exactly ten years ago, via a Management Buy-Out (MBO) with UKL 25 million capital, which grew about twenty-fold to about UKL 500 million today, and today has about 560 employees.
Canopius is named after Nathaniel Canopius, native of Crete, who studied at Balliol College, Oxford, apparently introduced coffee drinking to Oxford around 1637 (according to the Canopius website), and later became Archbishop of Smyrna (Source: “Anglicans and Orthodox, Unity and Subversion, 1559-1725”, by Judith Pinnington, 2003, ISBN 0-85244-577-6, page 15).
Sources: press announcements by the companies, websites.
Investment flow between EU and Japan shows strong impact from the Lehmann shock economic downturn. Investment flow from EU to Japan remains at relatively low levels around EURO 1 billion annually, while investments by Japanese companies in the EU are on the order of EURO 10 billion per year currently.
Supercell investment leverages paradigm shift, time shift and market disconnects
Smartphones and the “freemium” business models are bringing a dual paradigm shift to games and create a new truly global market. To take advantage of this global paradigm shift, its necessary to overcome the cultural disconnects between markets. SoftBank and GungHo‘s investment in the Finnish smartphone/tablet game maker Supercell, announced on Oct. 15, will help to overcome the disconnect between Japan’s and other game markets for both Supercell and GungHo.
One of SoftBank‘s aspects is it’s “time-shift” investment model, another is SoftBank‘s 30/300 year vision – both are important factors to understand the Supercell investment.
Comparing Supercell’s US$ 3 billion valuation with Japanese game companies (note that the market cap for the full SONY Group is shown here)
This Figure contrasts the market caps of new mobile and smartphone centric game companies (GungHo, Supercell, DeNA and GREE) with traditional console, video game and arcade game companies.
SoftBank announced that because of the majority investment, Supercell will become a subsidiary of SoftBank, and GungHo will account for Supercell’s profit/loss under the equity method.
Comparing Supercell with Japanese game companies and SoftBank
GungHo and Supercell both are top-ranking mobile game companies: GungHo inside Japan with “Puzzle and Dragons”, and Supercell outside Japan with “Hay Day” and “Clash of Clans”. Expect both to leverage each other’s resources.
Both GungHo and Supercell show explosive growth:
GungHo’s operating profits increased 4050% (x 40) for Jan-June 2013 compared to the same period one year earlier.
Supercell’s revenues (mainly in-game purchases) jumped 500x from EURO 151,000 in 2011 to EURO 78 million in 2012.
Culture can be an issue between Japan and other countries, however, SoftBank has invested in more than 1000 comparable companies, and many of SoftBank’s investments have been outstandingly successful including Alibaba and Yahoo.
However, investment and management support by SoftBank does not automatically guarantee success in Japan – despite SoftBank’s investment and support, Zynga closed operations in Japan earlier this year. Success in Japan will remain Supercell’s responsibility, despite SoftBank’s and GungHo’s help and investment – as Zynga can tell.
Astex Pharmaceuticals is an oncology drug discovery company based on the Pyramid drug discovery platform in Cambridge (UK)
Otsuka buys Astex in a tender offer for US$ 886 million
Otsuka buys Astex Pharmaceuticals (formally Astex Therapeutics, UK). Astex Therapeutics is a oncology drug discovery company based in Cambridge, England, and at the time of acquisition was listed on NASDAQ (ASTX).
The acquisition was done through a tender offer at an offer price of US$ 8.50 per share, a 48% premium on the stock price, starting on 13 September 2013, and completed on 10 October 2013, followed by a merger on 11 October 2013.
On 7 April 2011, Astex was acquired by SuperGen (NASDAQ:SUPG). The surviving company was Astex (NASDAQ:ASTX). This acquisition closed on July 2011.
Astex business model based on up-front technology access fees, success fees for milestones and product royalties to fund internal R&D
Astex Therapeutics has developed a business model where revenues offset cash burn. Fee income provides funding for Astex R&D: Astex does not work on a fee-for-service basis, but achieves substantial upfront cash technology access fees, and agrees on success fees based on achieved development milestones, and royalties on product sales.
Examples of major agreements under this business model:
6 December 2005: Novartis, upfront access fee and + deferred equity payments of US$ 25 million, potential of up to US$ 520 in fees. World-wide license for cell-cycle inhibitor AT9311, option to license cell cycle inhibitor AT7519
2008: Janssen, US$ 37 million upfront access fee and equity and initial research funding
Dentsu further expands the global footprint in Spain
On September 20, 2013 Dentsu announced further European investments this year in its quest to strengthen its global footprint:
acquisition of 51% of Ymedia SL via Aegis Media Iberia, full 100% acquisition expected by 2019
acquisition of 31.8% of Wink TTD SL via Aegis Media Iberia, full 100% acquisition expected by 2019
Ymedia SL
Ymedia SL is a full-service media agency, founded in December 2006 and based in Madrid, Spain, employing about 50 people.
Gross profits in the year ending Dec 2012 were about UKL 8.8 million.
Wink TTD SL – “Transforming through Digital”
Wink TTD SL: a communication agency for digital transformation.
Gabriel Saenz de Buruaga (former worldwide CEO for Havas Digital) and Alejandro Esteves (former Managing Director of Aegis Media, Spain) founded Wink TTD SL in November 2011 in Madrid, Spain, employing about 40 people.
Gross profits in the year ending Dec 2012 were about UKL 5.1 million.
Wink TTD SL has the following six founding principles:
Fast fish eat slow fish
Sector exclusivity
Best talent in the market
Senior talent dedication to clients
We charge for what we do
Dentsu and Dentsu-Aegis
Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.
Arkadin International SAS valued at approx. US$ 463 million
Collaboration-as-a-Service (CaaS)
On August 5, 2013, NTT Communications (NTT Com) announced that it will acquire 91.2% of the shares of the French conference and collaboration specialist Arkadin International SAS from current investors AXA Private Equity (now: Ardian Investment) and other investors.
The valuation is estimated at approximately US$ 463 million.
After the sale of 91.2% to NTT Communications, ownership will be as follows:
91.2% NTT Communications
8.8% management
Arkadin International SAS [enjoy sharing] – Collaboration-as-a-Service (CaaS)
Arkadin International SAS is one of the world’s largest providers of audio, web, video conferencing and unified communications services.
The company was founded in 2001 by Olivier de Puymorin, and today serves about 37,000 customers in 32 countries.
Dentsu further expands the global footprint in Europe
Social, content and digital marketing empowerment based in Italy
On July 30, 2013 Dentsu announced another European investment this year in its quest to strengthen its global footprint: the acquisition of a 70% majority share in the Italian Simple Agency via Aegis Media Italia, a of subsidiary Dentsu Aegis Network Ltd.
Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.
On May 23, 2013 Dentsu announced another European acquisition within the single month of May 2013 in its quest to strengthen its global footprint: the acquisition of the leading Dutch social media agency Social Embassy BV via its European subsidiary Dentsu Aegis Network Ltd.
Social Embassy BV
Social Embassy BV is The Netherlands’ largest social media agency, based in Amsterdam. The company was founded in 2008 by Steven Jongeneel and co-founder Niels van der Velden, and focuses on strategy & insights, content & community management, creative, brand engagement and advertising.
The company employed about 30 people when Dentsu acquired it.
Dentsu and Dentsu-Aegis
Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.
On May 14, 2013 Dentsu announced the acquisition of the Romanian digital advertising agency Kinecto via its subsidiary Dentsu-Aegis, based in London. Following the acquisition, the company was renamed Kinecto Isobar.
Kinecto
Kinecto International SRL is one of the most important digital advertising agencies in Romania, and was founded in 2002 by Dr Radu Ionesco and has about 10 employees.
The company focuses on online and social media campaigns, CRM programs, creative and production services for websites and micro websites, email marketing and search engine marketing
Before acquisition by Dentsu-Aegis, the company was part of the Tempo Creative Group.
Dentsu and Dentsu-Aegis
Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.
