Nexty Electronics Corporation (President: Atsushi Aoki; Headquarters: Minato-ku, Tokyo; hereinafter referred to as “Nexty Electronics”) has invested in Tokai-Soft Co., Ltd. (President: Hidekazu Ito; Headquarters: Nishi-ku, Nagoya-shi, Aichi Prefecture; hereinafter referred to as “Tokai-Soft”) for the purpose of enhancing its development of the in-vehicle software field in the automotive society.

By investing in Tokai-Soft, which has model-based development technology* related to automated driving and other technologies , Nexty Electronics will enhance its software development capabilities and accelerate toward the next-generation automotive society.

Background

In recent years, along with the sophistication of automobile functions, the roles expected of software such as for safety control, security, environmental friendliness, and control for realizing in-vehicle comfort, are increasing. Among these roles, the importance of software development capabilities for automated driving is growing significantly, and capital and business tie-ups including investment and acquisition of software companies by Japanese automotive companies as well as European and American automotive-related companies, are accelerating. In addition to advanced technical capabilities, development support to handle issues such as functional safety, quality improvement, and rapid development, will be also becoming important.

Purpose of this Investment

As a core company of the electronics business of the Toyota Tsusho Group, Nexty Electronics entered in the in-vehicle software business in 2004. By establishing large-scale offshore bases and conducting software development at them, the company has strengthened its project management capabilities and built a deep and broad customer network.

Tokai-Soft supports its customers' businesses as a company that provides one-stop solutions with technology to build total systems, centering on network infrastructure technologies such as factory automation and embedded software development. Furthermore, in the in-vehicle software field, Tokai-Soft has extensive experience in model-based development and advanced/mass production development using the C programming language.

Through this investment, Nexty Electronics aims to enhance the advanced safety of in-vehicle software and the data connected field, and to enhance its business foundation for the in-vehicle software market where Tokai-Soft is focused. In addition, in order to realize the next-generation automotive society, Nexty Electronics aims for the management of model-based development, the development and verification of next generation in-vehicle software systems, improvement in their related peripheral technological capabilities, and the shorter development period.

Overview of Tokai-Soft Co., Ltd.

Corporate Name: Tokai-Soft Co., Ltd.

Location: 2 Chome-15-2, Shinmichi, Nishi-ku, Nagoya-shi, Aichi Prefecture

Representative: President Hidekazu Ito

Business: Software development business for automotive and industrial machinery in the embedded field, and manufacturing, finance, and public sector in the IT field

Capital: ¥221.15 million

Established: May 30, 1970

Overview of Nexty Electronics Corporation

Corporate Name: Nexty Electronics Corporation

Location: Shinagawa Front Building, 3-13, Konan 2-chome, Minato-ku, Tokyo

President: Atsushi Aoki

No. of Employees: 1957

Business: Sales of semiconductor and electronics products, Embedded software development, Original product development, etc.

Capital: ¥5,284 billion (Toyota Tsusho Corporation 100%)

Established: April 1, 2017

* Model-based development is a development method that accelerates the development process by visualizing the functions (control logic) written in the specification document by mathematical equations and block diagrams, and simulating each function.