Nippon Telegraph and Telephone Corporation (NTT) purchased today an 80% stake in AutoWeb Communications, Inc., a leading provider of platforms for file transfers of content such as automotive blueprints. The agreement includes NTT providing executive directors to help run the U.S.-based company.
AutoWeb has developed high-security platforms, using original encryption technology and file-sharing servers, to provide makers of automobiles and auto parts with reliable, low-cost solutions for exchanging sensitive technological information, such as computer-aided design (CAD) data. The firm has a client base of more than 1,000 companies, including General Motors and DaimlerChrysler, and hopes now to expand this base into Japan and other Asian countries, as well as Europe.
NTT, by combining its own technology with that of AutoWeb, expects to develop business as follows:
| * | Wider Scope of Business
AutoWeb's current scope of business, mainly supporting design operations, will be expanded to include providing platforms that support total management of the supply chain, from issuing/receiving orders and settling accounts to sales support.
|
* |
Broader Customer Base
The customer base will be broadened to include all automotive companies, plus companies in other industries as well. |
The acquisition accords with NTT's active support of information distribution worldwide.
Outline of Agreement
| - | Investment by NTT |
| $11.2 million (80% of total shares) |
- |
NTT's Participation in Management |
| Will provide three of the firm's five executive directors (1 full-time and 2 part-time) |
Outline of AutoWeb
| - | Establishment |
| March 1997 |
- |
Headquarters |
| Oak Park, Michigan, U.S.A. |
- |
Other Shareholders |
| Integrated Systems Development, Inc.; Sumisho Electronics Co., Ltd.; Sumitomo Corp.; and Sumitornics Corp. |
- |
Main Business |
| Services for transmitting files of high-security content, such as technical plans and CAD data sent between makers of automobiles and auto parts (see attachment). |
- |
Customers |
| More than 1,000 customers, including makers of completed products and parts, such as DaimlerChrysler, Mercedes-Benz, Honda Motors, Toyota (U.S.A.) and Nissan (U.S.A.). Other customers include Pratt & Whitney in the aviation industry. |
- |
Reputation |
| Highly competitive in terms of pricing, reliability and after service |
|
