Trimble and Nikon sign definitive agreement to form joint venture for survey

Trimble and Nikon sign definitive agreement to form joint venture for survey

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Trimble and Nikon Corporation announced that they have reached a definitive agreement to form a 50-50 joint venture in Japan, Nikon-Trimble Co., Ltd., to address the survey instruments market. Financially, Nikon will contribute ¥1.2 billion (approximately US$10 million) in cash, while Trimble will contribute ¥500 million (approximately US$4.2 million) in cash and ¥700 million (approximately US$5.8 million) in its common stock. Nikon-Trimble Co., Ltd. will purchase assets from Nikon Geotecs Co., Ltd. and Trimble Japan KK and is expected to begin operations during the second quarter of 2003.
Under terms of the agreement, Trimble will acquire a 50 percent ownership stake in
Nikon-Trimble Co., Ltd., which will assume the operations of Nikon Geotecs Co., Ltd. in
Japan. The new entity will focus on the design and manufacture of surveying instruments including mechanical total stations and related products. In Japan, the joint venture will distribute Nikon’s survey products as well as Trimble’s survey products including Global Positioning System (GPS) and robotic total stations. Outside of Japan, Trimble will become the exclusive distributor of Nikon survey and construction products. Trimble expects the joint venture to enhance its market position in survey instruments through geographic expansion and market penetration. The Nikon instruments will broaden Trimble’s survey and construction product portfolio and enable the Company to better access emerging markets in Russia, Eastern Europe, India and China. It will provide Trimble with the ability to sell its GPS and robotic technology to existing Nikon customers around the world. Additionally, the new company is expected to improve Trimble’s market position in Japan, which remains a major market for survey instruments.