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Advantech Invests 19% Stake of Nippon RAD To Realize IoT System Integrator Co-Creation Strategy in Japan


In the board meeting today, global intelligent systems leader Advantech (2395.TW) agreed to invest in 1,004,310 common shares of Nippon RAD Inc. (4736.JASDAQ), equivalent to 19% of the total voting shares, at a price of JPY$1,098 per share (total JPY$1,102.7 million, equivalent to NT$303mn). Through this equity investment, Nippon RAD will officially become a co-creation partner of Advantech’s industrial IoT (IIoT) sector in Japan. Headquartered in Tokyo, Nippon RAD is a system integrator with approximately 300 employees. The company also has offices in Osaka, Nagoya, and Fukuoka.

Advantech and Nippon RAD officially form a strategic alliance on a co-creation model between a platform provider and a system integrator, aiming to further expand the business scope in IIoT and machine-to-intelligence (M2I) sectors in Japan. In addition to product and technology support, Advantech will cooperate with Nippon RAD in jointly marketing WISE-PaaS and solution-ready platform (SRP) technologies in Japan. Nippon RAD will become the WISE-PaaS Competence Center in Japan and will adopt Advantech’s IIoT, WISE-PaaS, and SRP products to fulfill projects and meet market demand in Japan, especially in smart factory and Industry 4.0 application markets.

According to KC Liu, Chairman of Advantech, “Japan is Advantech’s strategic market for IoT business opportunities. It is our view that there are big opportunities in both industrial and IoT markets given the strong and advanced industrial demand. Nippon RAD is one of the few industrial system integrators that have the dedication to transform the business model from IT-based solutions to IoT-centric solutions. We believe that, after teaming up with Nippon RAD, Advantech will increase our business potential in Japan’s IIoT market.”

Mr. Ryuichi Ohtsuka, founder and Chairman of Nippon RAD, stated, “As one of the earliest trailblazing system integrators in Japan, Nippon RAD has been pursuing and pioneering challenging business areas requiring high levels of proficiency in both hardware and software. As we have faced a recent upsurge in the IoT sector, especially on IIoT and M2I, we foresee great opportunities and have sought after good partnerships while independently providing technology services here. Since we started working with Advantech, we have achieved a lot in a short time and have come to believe that Advantech will be a great partner in the IIoT market in Japan. This combination of our integration and Advantech’s solutions will allow us to co-create significant revenue growth in the foreseeable future

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