OMRON to Acquire U.S.-based Motion Control Company

- Strengthening Technology Development and Sales Capabilities for Factory Automation Business -

KYOTO, Japan, July 30, 2015 -- Following a resolution at a meeting of its Board of Directors held on July 30, OMRON Corporation announced its entry into a stock purchase agreement to acquire a 100% stake in Delta Tau Data Systems, Inc. of California, the United States (hereinafter referred to as "DT"), which will result in DT becoming a member of the OMRON Group. The acquisition is subject to customary conditions to closing. Omron expects the acquisition to close around early September, 2015.

With headquarters in Chatsworth, California, DT is a control device company. This acquisition is part of OMRON's strategy to promote its development of factory automation technology and strengthen its sales capability in the control device business. Through the acquisition of DT, OMRON aims to reinforce its technology development and engineering capabilities in the field of motion control (*1) designed to drive manufacturing equipment. Merging products and technologies of both companies will also enable delivery of optimized motion control solutions globally through combined distribution networks.

As a leader in industrial automation, OMRON has extensive lines of control components and equipment, ranging from image-processing sensors and other input devices through various controllers to output devices such as servo drives and servo motors, along with a range of safety devices and in-panel controllers. Combining these products, OMRON continues to offer a wide range of advanced automation solutions to manufacturers worldwide.

In recent years, the manufacturing industry has experienced radical environmental changes, such as the globalization of markets and shortened product cycles. In the midst of these changes, production sites face rising challenges: improving productivity by increasing machine throughput speed and accuracy, labor-saving through the use of robots, and quality enhancement. To help manufacturers meet these challenges, OMRON has released the NJ/NX series of controllers that integrate programmable logic controller (PLC) and motion controller functions into a single unit. Connecting various input and output devices such as vision sensors and servo drives to the NJ/NX controller in a seamless manner enables high-performance motion control that was difficult through conventional PLCs. Centering on the NJ/NX series, OMRON provides manufacturers in the automobile, digital device, food and beverage, and other industries with solutions and engineering support.

DT, as a specialist manufacturer of motion controllers, boasts renowned and powerful development and systems integration capabilities that enabled the company to develop, manufacture, and market what is widely recognized as the world's highest level motion controller, dubbed "PMAC." This product is now used mainly by U.S. and South Korean manufacturers of semiconductor and LCD manufacturing equipment, machine tools, and packaging machines, among others.

This acquisition will allow OMRON to combine DT's PMAC motion controller with its wide range of products and offer new solutions to its customers globally. By leveraging DT's sales network equipped with highly skilled engineering capability, OMRON will provide DT's customers with high-performance solutions comprising OMRON's control devices and DT's PMAC. OMRON will also aim to expand applications of its solutions by adopting the high-performance motion control technology to OMRON's NJ/NX series controllers that DT has accumulated over many years.

Through the acquisition of DT, OMRON will further advance its leading automation technology. In addition, by promoting manufacturing innovation together with its customers, OMRON will steadily reinforce its industrial automation business, one of the pivotal strategies of the OMRON Group's long-term management strategy, called "Value Generation 2020 (*2)," as it works to drive further growth for the future.

(*1) A motion controller is a controller designed to control the motion of a servo or stepping motor by executing the program that specifies its motion by means of time and position. The motion controller is available in various configurations, including PLC-embedded, PLC unit, and PC board types. "The world's highest level" refers to the motion control performance of 50 microseconds/8 axes (an OMRON survey as of August 2015).

(*2) "Value Generation 2020 (VG2020)" is the OMRON Group's long-term management strategy targeting the decade from 2011 to 2020. To achieve VG2020 goals, OMRON is committed to accelerating business growth, and providing new value to many customers across the world.

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