Absorption-Type Company Split for Device & Module Solutions Business Takes Effect; Company Renamed Aratas Corporation

OMRON Completes Device & Module Solutions Business Spin-Off; Subsidiary Renamed Aratas Corporation

OMRON Corporation has officially completed the transfer of its Device & Module Solutions Business (DMB) to a newly established subsidiary through an absorption-type company split, marking a major milestone in the company’s strategic restructuring efforts. Effective the transaction has come into force, paving the way for the newly created entity to begin operations under its new corporate identity, Aratas Corporation.

The Absorption move follows OMRON’s announcement made on March 30, 2026, regarding its plans to separate the Device & Module Solutions Business and subsequently transfer ownership of the newly established company as part of a broader strategic transaction involving global investment firm The Carlyle Group.

The Absorption completion of the absorption-type company split represents an important step in OMRON’s efforts to enhance the long-term competitiveness and growth potential of its electronic components business while enabling the newly formed company to pursue independent development opportunities under a new ownership structure.

Strategic Separation to Accelerate Growth

The Absorption Device & Module Solutions Business has long been an integral part of OMRON’s portfolio, providing electronic components and modules that support a wide variety of industrial, automotive, consumer, healthcare, and infrastructure applications.

As industries continue to evolve amid digital transformation, electrification, and increased demand for advanced sensing and control technologies, OMRON has determined that a more focused operating structure would provide greater flexibility for the business to expand globally and respond more effectively to market changes.

Through the Absorption completed company split, OMRON has transferred the DMB business to a dedicated subsidiary that was established specifically for this purpose earlier this year.

The separation is designed to provide the new company with enhanced operational autonomy, allowing it to make strategic decisions more quickly, invest in future technologies, and pursue growth opportunities aligned with the changing needs of customers worldwide.

The initiative also forms part of a larger transaction that includes the planned transfer of ownership to an investment vehicle affiliated with The Carlyle Group, one of the world’s leading global investment firms.

OMRON has stated that the overall transaction aims to create an environment that supports long-term and sustainable growth for the business while preserving its technological strengths and customer relationships.

Absorption

Introducing Aratas Corporation

Coinciding with the completion of the business transfer, OMRON has announced the official renaming of the successor company to Aratas Corporation.

The name reflects the organization’s ambitions as it embarks on a new chapter as an independent enterprise.

Derived from the Japanese words “Aratana,” meaning new, and “Asu,” meaning tomorrow, the name symbolizes a commitment to creating new possibilities and contributing to the future of society together with customers, partners, and stakeholders around the world.

According to OMRON, the new identity represents the beginning of a fresh phase of development for the business.

As a company rooted in Japanese technological expertise yet operating on a global scale, Aratas seeks to combine innovation, reliability, and customer-centric values to deliver advanced electronic solutions for evolving markets.

The Absorption transition also aligns with previous announcements regarding the introduction of a new logo and brand image for the electronic components business following its spin-off.

Through this rebranding initiative, the organization intends to establish a distinct market presence while maintaining the technological heritage and engineering excellence cultivated over decades within the OMRON Group.

Overview of the Company Split

The Absorption completed absorption-type company split involved the transfer of the Device & Module Solutions Business from OMRON Corporation to OMRON Devices Co., Ltd., which has now been renamed Aratas Corporation.

Prior to the Absorption name change, the successor company was incorporated in January 2026 as a wholly owned subsidiary of OMRON.

Both the parent company and the newly established subsidiary are headquartered at OMRON’s facilities in Kyoto, Japan.

OMRON Corporation continues to operate its broader portfolio of businesses, including industrial automation, healthcare, social systems, and other strategic initiatives.

Meanwhile, Aratas will focus specifically on electronic components, modules, and related technologies.

Before the transaction, OMRON Devices Co., Ltd. had a capital base of 10 million yen.

Following the completion of the split, Aratas Corporation now possesses capital of 1 billion yen, providing a stronger financial foundation to support future business expansion.

The Absorption company will continue to maintain a fiscal year ending on March 31.

Leadership responsibilities for the newly established organization will be assumed by Masahiko Ezaki, who will serve as President of Aratas Corporation.

Under his direction, the company is expected to pursue growth initiatives aimed at strengthening its position within the global electronic components market.

Financial Profile of the Companies

As of March 31, 2026, OMRON Corporation reported total assets of approximately 680.4 billion yen and net assets amounting to nearly 264.7 billion yen.

The Absorption company generated net sales exceeding 293.3 billion yen during the fiscal year.

Although OMRON recorded an operating loss for the period, it achieved positive ordinary income and net income, reflecting ongoing efforts to optimize its portfolio and improve operational performance.

Prior to assuming the Device & Module Solutions Business, the successor company maintained only limited assets and activities as a preparatory corporate entity established for the restructuring process.

With the Absorption transfer now complete, Aratas inherits a substantial business operation focused on manufacturing, sales, and development activities associated with electronic components and electrical machinery.

The newly independent company is expected to leverage these capabilities to strengthen its market position and pursue future expansion opportunities.

Global Asset Transfers Underway

The Absorption transaction extends beyond the domestic company split completed on July 1.

OMRON has indicated that it plans to continue transferring shares, assets, and business-related holdings associated with the Device & Module Solutions Business from group companies located across various countries and regions.

These activities are intended to consolidate relevant operations under the Aratas structure and create a unified global organization dedicated to the electronic components business.

The Absorption process is expected to facilitate greater operational efficiency and enable the company to streamline decision-making across international markets.

By bringing together assets and operations under a single entity, Aratas may be better positioned to respond quickly to customer requirements, accelerate product development, and pursue strategic investments.

OMRON has emphasized that these global restructuring initiatives are part of a broader plan designed to maximize the long-term potential of the business.

Carlyle to Become Principal Shareholder

As previously announced, OMRON intends to transfer all shares of Aratas Corporation to TCG2602 Co., Ltd., a wholly owned subsidiary of TCG2601 Co., Ltd., which was established by The Carlyle Group.

The Absorption transaction is expected to be completed on October 1, 2026.

Upon closing, Carlyle will become the principal shareholder of Aratas, ushering in a new ownership structure intended to support the company’s continued development.

The Carlyle Group is widely recognized for investing in businesses with strong growth prospects and helping organizations accelerate transformation through operational expertise, strategic guidance, and long-term capital support.

OMRON believes that Carlyle’s involvement will provide Aratas with additional resources and opportunities to strengthen its competitive position in the global market.

The Absorption electronic components industry continues to experience rapid change driven by trends such as electrification, renewable energy, industrial automation, artificial intelligence, advanced mobility solutions, and digital connectivity.

With access to Carlyle’s global network and investment capabilities, Aratas is expected to pursue initiatives aimed at enhancing innovation, expanding international reach, and increasing business resilience.

OMRON’s Continued Commitment

Despite the Absorption planned ownership transition, OMRON has reiterated its commitment to supporting Aratas throughout the transformation process.

The Absorption company has indicated that it intends to provide various forms of assistance as Aratas establishes itself as an independent enterprise.

This support may include collaboration in areas such as technology development, operational expertise, customer relationships, and organizational transition activities.

OMRON views the establishment of Aratas not simply as a divestiture but as a strategic initiative designed to position the business for sustainable growth under a new structure.

By enabling the company to operate independently while benefiting from the backing of an experienced investment partner, OMRON aims to create favorable conditions for long-term success.

The Absorption approach reflects a broader trend among industrial companies seeking to unlock value through portfolio optimization and focused business models.

Specialized organizations often gain greater agility, allowing them to respond more effectively to industry dynamics and changing customer expectations.

Positioning for Future Opportunities

Aratas enters the market at a time when demand for electronic components continues to rise across multiple industries.

Technologies such as electric vehicles, renewable energy systems, smart factories, industrial robotics, communication infrastructure, healthcare devices, and consumer electronics increasingly rely on advanced sensing, switching, control, and connectivity solutions.

As a dedicated electronic components company, Aratas is expected to pursue opportunities in these expanding sectors.

The Absorption organization inherits decades of expertise developed within OMRON’s Device & Module Solutions Business and possesses a portfolio that includes relays, switches, connectors, sensors, and other critical electronic devices.

With a stronger focus on its core markets and access to new investment resources, Aratas seeks to strengthen innovation capabilities while maintaining close relationships with customers worldwide.

Its mission will likely center on delivering reliable, high-quality technologies that contribute to industrial efficiency, digital transformation, and sustainable development.

The new company’s Japanese heritage remains an important element of its identity, while its ambitions clearly extend to serving global markets and addressing future technological challenges.

About OMRON Corporation

OMRON Corporation is a leading automation company recognized for its expertise in Sensing & Control + Think technologies.

Founded in 1933, the company has built a diverse business portfolio encompassing industrial automation, healthcare, social systems, and device and module solutions.

Through the integration of sensing technologies, control systems, software capabilities, and data-driven solutions, OMRON aims to create value that supports a better and more sustainable society.

The Absorption company employs approximately 26,000 people worldwide and conducts business in more than 130 countries and regions.

Its technologies are widely used in manufacturing, transportation, healthcare, energy, and infrastructure applications.

As OMRON continues to evolve its business portfolio, the creation of Aratas Corporation represents another step in its ongoing transformation strategy.

By establishing an independent electronic components company supported by a new ownership structure, OMRON seeks to ensure that the business remains well positioned to capitalize on future opportunities and deliver lasting value to customers, employees, and stakeholders around the world.

Source link: https://www.omron.com/

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