Japan's Integral buys UPT from Advantage, sells BTC to Capgemini
Japanese middle market private equity firm Integral Corporation has acquired United Precision Technologies (UPT), which supplies components used in smart devices, from Advantage Partners and sold IT consulting business BTC to Capgemini.
Pricing details for the transactions were not disclosed. Advantage held UPT – which controls the operating business, Kyosei – for eight years, having bought the business through a bridge vehicle raised between Funds IV and V. It was a founder-succession deal that involved an expansion from core competencies in consumer electronics into medical devices and semiconductor-related components.
A key bolt-on acquisition came in 2017 when UPT absorbed Koken Chemical, a competitor to Kyosei in the photo-etching processing space. This made UPT one of the largest players in photo-etching, whereby ultraviolet light is used to imprint designs on very thin sheets of metal.
Integral noted in a statement that UPT has become a global niche player in the production of voice coil motors for auto-focus and optical image stabiliser mechanisms that feature in smart phones and other devices. The company also supplies components used in semiconductor manufacturing and inspection. The current management team will remain in place and Integral will support further expansion.
BTC – or Bigtree Technology & Consulting – was acquired by Integral in 2018 through its third fund, which closed on JPY 73bn (USD 670m) a year earlier. The company works with leading corporations and government agencies as a prime contractor. It has achieved solid revenue growth and stable profitability on the back of rising demand for digital transformation services, according to a separate statement.
Capgemini said the acquisition of BTC would allow it to build out cloud and digital capabilities in Japan, where clients increasingly want to run their entire business in the cloud.
“BTC will bring to Capgemini our deep cloud and digital expertise to augment its portfolio of services in Japan. While at the same time, Capgemini’s scale and breadth of end-to-end services will offer significant added value to BTC’s clients,” said Ken Sugiyama, CEO of BTC, in a statement released by Capgemini.
“In addition, providing an environment to maximize our employees’ potential has always been a key priority for us at BTC. Joining the Capgemini Group will open up numerous new opportunities for our team members to expand and develop their careers globally.”
Integral is currently deploying its fourth fund, which closed at the hard cap of JPY 123.8bn (USD 1.2bn) in 2020. The firm seeks to distinguish itself through DII – or deal-inducing investment, whereby Integral puts balance sheet capital into investments alongside fund commitments – and i-engine, a dedicated in-house corporate value enhancement team.
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