Datalogic enters strategic agreement with Japanese market leader in industrial automation

Datalogic and IDEC Corporation to partner for strong entry into Japanese market for ADC in retail.
By Modern Materials Handling Staff
November 20, 2013 - MMH Editorial

Datalogic, a leader in the automatic data capture and industrial automation markets, has announced that it has concluded a strategic agreement with Japanese company IDEC Corporation for the development of the Japanese market.

Already a partner of Datalogic in the industrial automation market through an equal joint venture company, IDEC Datalogic, IDEC Corporation is a company listed on the Tokyo Stock Exchange and is a market leader in Japan’s industrial automation market with a turnover of 29.3 billion yen (approximately 217 million Euro).

This new agreement will enable Datalogic to make a strong entry into the Japanese market; IDEC will become the exclusive distributor for Datalogic in Japan and will operate both under a distribution contract and under license enabling them, within the domestic market, to make use of the IP portfolio and carry out all modifications necessary to ensure that the Group’s products meet the requirements of Japanese clients. IDEC’s local roots and market penetration combined with the technology and capacity for innovation provided by Datalogic will enable access to a market traditionally closed to foreign operators. The expansion in the range of products, particularly through the distribution also of ADC products dedicated to the retail market, a segment in which IDEC is not currently present, will enable them to achieve new customer segments and improve the positioning of the Group on a medium to long-term basis. The license and distribution agreement is expected to be effective from December 19, 2013.

The agreement further strengthens the Group’s partnership with IDEC Corporation through the addition of Datalogic as a shareholder of the Japanese company.  At the completion of the transaction, Datalogic will hold 477,640 shares, equal to approximately 1.2% of IDEC Corporation.  Datalogic will acquire this shareholding in exchange for its contribution to IDEC Corporation of its shareholdings in Japan (50% of IDL and 100% of Datalogic ADC KK Co., Ltd. (“ADC”)). The exchange of shares has been carried out on the basis of a valuation of IDL/ADC of 417 million Yen (approximately 3.1 million Euro at the current exchange rate), and on a valuation of the IDEC shares based on the average market price during the months of March, April and May 2013.

The chairman and CEO of the Datalogic Group, Romano Volta, commented: “We are very happy to have concluded this agreement which we consider to be strategic and which consolidates a partnership of over 20 years with one of the main operators in Japan, the leader in the Industrial Automation segment. Thanks to mutual awareness, shared opinions and a balanced mix of competences, we consider IDEC to be an ideal partner for the development in a country where local presence and leadership is a basic requirement for growth. This agreement, sealed with a share exchange, is the first building block towards leadership in areas in which our presence has been limited up until now and it confirms our desire to expand into the Asia-Pacific area where we consider there to be the potential for above-average market growth.”

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About the Author

Josh Bond, Senior Editor
Josh Bond is Senior Editor for Modern, and was formerly Modern’s lift truck columnist and associate editor. He has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce University.


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