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OKI, Itautec team up to tackle Brazilian ATM market

May 16, 2013

Japanese telecommunications manufacturer Oki Electric Industry Co. Ltd. has announced a strategic partnership to jointly operate an automation and services company in Brazil with Itautec, a Brazilian company that specializes in banking automation services. Itautec is controlled by ITAÚSA - Investimentos Itaú S.A., the second largest private conglomerate in Brazil.

The goal of the partnership is to help both OKI and Itautec drive growth and capture a leading market share in Brazil's ATM and IT markets. According to a press release, the companies plan to capitalize on best-in-class cash recycling technologies from OKI paired with the extensive customer base and services network of Itautec.

OKI has identified the development of cash-recycling ATM markets outside of Japan as a key growth area. The company currently owns the leading market share in Japan, China, Russia and Indonesia, and is expanding its focus to emerging markets promising rapid economic growth is expected.

The Itautec Automation and Services division operates a manufacturing facility in Brazil, service sites throughout the country and sales operations in several countries in Latin America and Europe. The division holds approximately 30 percent of the market share in Brazil and is the second largest ATM manufacturer in the country. 

Per an agreement signed by OKI and Itautec, OKI will acquire a 70 percent stake in a newly established company holding Itautec Automation and Services (the company's personal computer unit is not part of the transaction). Itautec will own the remaining 30 percent stake in the new company. Pending regulatory approvals, the deal is expected to close by the end of the year.

"We are delighted to reach an agreement with Itautec," said Hideichi Kawasaki, president of OKI. "The agreement will enable OKI to design, develop and manufacture ATMs, as well as to sell and provide maintenance services in Brazil. Moreover, OKI now has a business foothold in Central and South America. Together with Itautec, we plan for further growth in these expanding markets."

"Itautec is pleased with the partnership with OKI since it enables us to provide higher value services to customers and to enhance our capabilities to grow in a sustainable way and broaden our markets, not only with ATMs but also bank branch systems," said Ricardo Setubal, chairman of Itautec.

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