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Agreement Reached To Transfer NEC's Magneto-Resistance Sensor Business To Murata

11th February 2013

ES Admin

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NEC Corporation and Murata have reached an agreement to transfer the magneto-resistance sensor business of NEC and NEC Yamanashi, a wholly owned NEC subsidiary, to Murata. Under the agreement, the transfer is scheduled to be complete by June 1, 2013. This business transfer is expected to have minimal influence on the consolidated financial results of both companies.

NEC's MR sensor products are valued for their performance and technical support and are used for a wide range of purposes that include the detection of when mobile phones and laptop PCs are opened or closed and devices that detect the volume of fluid to water heaters, water meters and gas meters.

Murata supplies magnetic identification sensors for currency, magnetic ink and magnetic card ink, as well as rotation sensors used in office and factory equipment. Murata is also pursuing new magnetic sensing technologies in order to expand its business in the industrial equipment, automotive and consumer products segment.

As a result of the MR sensor business transfer, Murata will be able to integrate NEC's MR sensor business technology assets and expertise with its own technologies and broad customer base from the electronic components business. Furthermore, the company will be able to reinforce its initiatives in the expanding MR sensor segment of the consumer products and industrial equipment markets.