Hitachi strikes deal to buy JR Automation

Editor: Lisa Lucke

Hitachi Ltd. has entered into a definitive contract for the acquisition of the robotic SI business JR Automation Technologies LLC, which builds production lines and logistics systems using industrial robots.

Hitachi is paying USD 1.425 million on a cash-free, debt-free basis. As a result of the purchase, expected to be executed by the end of 2019, Hitachi will officially enter the robotic SI business in North America. In the Industry Sector(3), Hitachi will continue to accelerate the global rollout of the robotic SI business, together with the acquisition of KEC Corporation (KEC), a Japanese robotic system integrator, for which an acquisition contract was completed by Hitachi Industrial Equipment Systems Co., Ltd. (HIES) in March 2019(4), according to a company press release distributed by Hitachi. Under terms of the transaction, Hitachi will acquire JR Automation’s customer base in the OT domain, along with advanced robotic SI technologies, know-how, and resources, enabling Hitachi to expand its Lumada Solution business, Hitachi’s advanced digital solutions, services, and technologies business. In the Industry Sector, Hitachi will roll out a robotic SI business by leveraging the resources of JR Automation, with its customer base in the U.S. and other regions globally, in addition to HIEC and KEC, with their customer mainly bases in Japan and other parts of Asia. As a result of these initiatives, Hitachi will expand Lumada Solutions globally. Specifically, 4M data from the workplace, obtained by the robotic SI business, will allow for Lumada Solutions to expand across multiple fields, including visualization, manufacturing optimization, logistics, and maintenance.

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