Marubeni-owned iSigma buys Japan's Kyosemi
ISigma, a mid-size buyout firm controlled by Japanese trading and investment conglomerate Marubeni, has acquired domestic semiconductor equipment manufacturer Kyosemi Corporation.
The firm is taking a 82% stake in the company from founder Josuke Nakata and his family through iSigma Business Advancement Fund II (BAF II), which achieved a final close early last year at JPY20.3 billion ($198.2 million) after a mid-2013 launch.
Financial details of the transaction were not disclosed, but iSigma indicated it intended to acquire the remaining 18% shares held by non-family shareholders in order to establish a more flexible and agile business management system. The company claims JPY521.5 million in paid-up capital.
Founded in 1980, Kyosemi produces optical communications and photo devices for sensors used in communications infrastructure, industrial equipment, medicine, security, and appliances. The company also offers services in device design and reliability testing. These are expected to allow it to respond quickly to changing customer needs as iSigma pursues growth through the introduction of management improvement methods and business expansion initiatives.
"We believe that growth potential of the opto semiconductor device market is high under the expectation of the IoT [internet-of-things] era, and optical communication networks that deliver information shall become all the more important," iSigma said in a statement.
The transaction has resulted in Naohiro Yokogawa being promoted to president and representative director of Kyosemi after previously serving as managing director and general manager of production, sales and marketing. Nakata will continue as chairman while leading the company's solar equipment subsidiary, Sphelar Power, which is being spun-out to US engineering company J.N. Corporation.
Recent activity from BAF II includes the acquisition of Japanese cybersecurity platform provider VarioSecure and an investment in industrial paint company Kohken. The fund's first investment was Iino Manufacturing, an auto parts maker with clients in the Philippines, China, Indonesia and North America. It is expected to acquire six to seven companies in all.
Marubeni formed its first buyout fund in Japan with Advantage Partners in 1997. It established iSigma in 2000 as a venture fund manager before redirecting the firm into buyout activities in 2006.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.