TOKYO - Hitachi, Ltd. (NYSE:HIT)(TSE:6501) and Omron Corporation (TSE / OSE: 6645) have released more details of a joint venture for combining their ATM and other information equipment businesses.
The companies agreed to combine the businesses on Jan. 26. (See related story Hitachi, Omron to combine ATM operations)
The new company, to start operations on Oct. 1, will be called Hitachi-Omron Terminal Solutions Corp. It will plan, develop, manufacture and sell ATMs and other self-service machines, terminal systems and other information equipment as well as modules and solutions businesses.
Hitachi and Omron each asked third parties to examine the value of their respective businesses to be separated. Based on those examinations, Hitachi and Omron agreed on a ratio of 55:45. Hitachi will receive 55,000 shares of common stock to be issued by the new company, while Omron will receive 45,000 shares.
Formation of the new company is expected to have a negligible impact on the operating results of Hitachi and Omron for the fiscal year ending March 31, 2005.
Directors of the new company will include: Kunihiro Kamiya, general manager, E-Solutions Division of Hitachi's Information & Telecommunication Systems, as chairman of the board; and Akihiko Otani, senior managing officer of Omron and president of Financial Systems Business Company as president and CEO.
The new company is expected to have sales of about 80 billion yen (U.S. $750 million) in the year to March 2005, giving it about eight percent of the global ATM market. This would make it the world's fourth-largest ATM manufacturer, after NCR, Diebold and Wincor Nixdorf.
