Omron and Cellport Systems form Telematics alliance

Omron and Colorado-based Cellport have agreed to form an extensive partnership, which includes the establishment of a joint venture company.

The partnership features the integration of gateway technology for in-vehicle/external network connectivity, hands free devices and voice recognition technology. Both companies will work to promote the Telematics business in global markets, including Japan and throughout Asia, with the aim of achieving a de-facto standard.

Specifically, new products will be developed that integrate Cellport Systems’ mobile network technology for vehicle-based applications with Omron’s M2M (machine-to-machine) business, sensing technologies, and voice/face recognition technologies. A joint venture company will also be established to penetrate the market in Asia including Japan.

Omron has agreed to participate in the Global Partner Program promoted by Cellport Systems and join forces with the company to promote open Telematics technology and business, toward the eventual goal of setting de-facto global standards.

To strengthen the relationship with Cellport Systems, Omron will invest US$10 million in Cellport Systems. This makes Omron the company’s second largest investor after Cisco Systems and on the same level with AT&T Wireless.

Omron and Cellport have also agreed to establish a joint venture company within four months. Once established, the new company will develop, produce and market new products in the high-growth Telematics markets of Japan, China and the rest of Asia.

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