The Riverside Company has completed its second platform investment in Japan through the acquisition of NAKA, a crystal oscillator manufacturer. Financial details of the transaction have not been disclosed.
NAKA, which was established in 1979 as an electronics part manufacturer, produces crystal oscillators that are used in almost all electronic devices that require stable frequencies or precise clocks. These devices help keep track of time, provide stable clock signals for digital integrated circuits, and stabilise frequencies for radio transmitters and receivers.
The company will use the capital to “to expand its customer base within the microwave device market, and penetrate new markets like long term evolution base stations,” Tokihiko Mori, an operating partner at Riverside, said in a statement. The firm will now consider add-ons that will bring more clients and open more global markets to the company, Mori added.
Riverside made the investment from its maiden Asia-focused fund, Riverside Asia Fund I, which held a $25 million first close in 2008. The fund is currently raising capital.
The investment in NAKA marks the Riverside Asia Fund I's second platform investment in Japan and its fourth platform investment in Asia. The firm’s maiden deal in Asia came by way of the acquisition of Japanese parking lot operator, Shinsouki. In April 2009, the firm acquired MAOS, its first add-on acquisition for Shinsouki.
Riverside is a global private equity firm focused on acquiring leading small and medium-sized enterprises with a value of up to $200 million. Since its founding in 1988, the firm has invested in 230 transactions with a total enterprise value of $5 billion.
In Asia, Riverside typically has a focus on the more mature economies of Japan, Korea, Australia and Singapore.
In all, the deal is Riverside’s seventh acquisition in 2010.