Product category: Embedded Software and Operating Systems
News Release from: Esmertec
Edited by the Electronicstalk Editorial Team on 10 October 2006

Japanese subsidiary buys itself out

The management and employees of Esmertec's Japanese subsidiary have formed a partnership and have purchased a 62% stake in Esmertec KK

The management and employees of Esmertec's Japanese subsidiary have formed a partnership and have purchased a 62% stake in Esmertec KK, reducing Esmertec's interest in the Japanese company to slightly under 20%. The remaining shares in Esmertec KK continue to be held by certain sellers of eValley, a predecessor company to Esmertec KK.

The sale of the majority stake in its Japanese subsidiary is consistent with Esmertec's strategy of focusing its global sales efforts through direct sales channels in strategic markets.

The management buy-out will support Esmertec in its efforts to optimise its cost structure while efficiently addressing the Japanese market through a dedicated reseller who knows Esmertec's products and markets.

Consequently Esmertec KK will continue to be the exclusive reseller of Esmertec mobile and multimedia software products in Japan.

'The management buyout is a great opportunity for our management team to continue to build a successful business from a solid base', stated Naoki Iizuka, CEO of Esmertec KK.

'There is a strong and growing market opportunity for an embedded software solution provider in Japan and our technology and products are the best fit for this market'.

Jean-Claude Martinez, CEO of Esmertec, commented: 'This transaction allows us to focus our resources on key markets where we continue to strengthen our sales force'.

'Japan remains an attractive market and we will continue to co-operate with Naoki Iizuka and the Esmertec KK team in the future'.

'Our existing customers will experience the same high service level they have been receiving from Esmertec'.

The purchase of Esmertec KK shares was financed by a combination of cash and debt.

Both parties have agreed not to disclose the financial details.

The transaction is not expected to have any material impact on Esmertec's financial results for the year ending 31st December 2006.

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