Trimble and Nikon today announced that they have reached a definitive agreement to form Nikon-Trimble, a 50-50 joint venture in Japan that will address the survey instruments market.
Financially, Nikon will contribute 1.2 billion yen (approximately $10 million) in cash, while Trimble will contribute 500 million yen (approximately $4.2 million) in cash and 700 million yen (approximately $5.8 million) in its common stock.
Nikon-Trimble will purchase assets from Nikon Geotecs and Trimble Japan 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, which will assume the operations of Nikon Geotecs in Japan.
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 reportedly broaden Trimble’s survey and construction product portfolio and enable the company to better access emerging markets in Russia, Eastern Europe, India and China. Similarly, it will provide Trimble with the ability to sell its GPS and robotic technology to existing Nikon customers around the world.