Ubiquitous AI Acquires 100% Stake of Grape Systems— Acquisition strengthens customer base, product lineup, and embedded development capabilities —

TOKYO —September 7, 2023— Ubiquitous AI Corporation (TSE:3858) and GRAPE SYSTEMS INC. (Yokohama-city, Kanagawa; President: Kiyotaka Kudo) have reached an agreement for Ubiquitous AI to acquire all outstanding shares of Grape Systems, resulting in its transition to a wholly owned subsidiary.

Background of Capital Integration

Prior to this integration, Ubiquitous AI and Grape Systems entered into a capital and business alliance on March 31, 2022, at which time Ubiquitous AI acquired a portion of Grape Systems' shares.

Both companies specialize in the development and sale of embedded software. Ubiquitous AI offers a diverse and extensive product lineup, while Grape Systems possesses strong contract development capabilities in addition to its specialized software for embedded systems and printers. Through collaboration leveraging these respective strengths, both companies have aimed to drive technological innovation and better serve evolving customer needs.

Since the initial alliance, both parties have realized significant benefits through specific business collaborations and identified substantial potential for further synergies by deepening the relationship. While there were once concerns regarding a shrinking market for embedded system development, the sector is now accelerating. This growth is driven by the expansion of automotive electronics and EVs, the proliferation of IoT devices, and the heightened need for device security. By combining the experience and expertise of both companies, we will capture a broader range of these business opportunities.

Future Initiatives

Following the acquisition of 100% of its shares by Ubiquitous AI, Grape Systems will continue its business operations as an independent entity. Moving forward, the two companies will deepen their cooperation by aligning business operations and leveraging shared resources.

Furthermore, both companies will jointly tackle the challenge of recruiting and training embedded engineers--a key industry priority. This will not only bolster customer support structures but also allow for the exploration of new business opportunities that utilize a high-caliber talent pool.

About Ubiquitous AI Corporation (Tokyo Stock Exchange: 3858)

Ubiquitous AI Corporation delivers advanced technologies and services that support customers in the manufacturing industry, building on decades of experience in embedded software development. With a strong foundation of leading-edge technologies and a global customer base, the company provides proprietary software products alongside related professional services. Ubiquitous AI is committed to the growth of its customers, business partners and society.

Head Office: Shinjuku First West Bldg. 17F, 1-23-7 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-0023, JAPAN
URL: https://www.ubiquitous-ai.com/en/

About Grape Systems

GRAPE SYSTEMS INC. provides essential solutions for embedded device development, ranging from proprietary USB/printer drivers and barcode software to high-quality products from global partners. Leveraging years of expertise, the company specializes in contract development for embedded systems and printer software, while expanding open-source security inspections and integrated IoT services.
Furthermore, Grape System is a trusted provider for the public sector; its voice code software for the visually impaired has been widely adopted for official use, including Japan's Pension Statement service.
Headquarters: Musashikosugi Tower Place 14F, 1-403 Kosugimachi, Nakahara-ku, Kawasaki-shi, Kanagawa, Japan
URL: https://www.grape.co.jp/ (Japanese only)

Note to investors

This press release is intended to provide information about the qualitative progress of Ubiquitous AI Corporation's business activities and is not a solicitation for investment. For details regarding financial results, key performance indicators, or forecasts, please refer to our most recent earnings summaries and other disclosures published through the Tokyo Stock Exchange.

Media Contacts

Yu ASO
Marketing and Communication Department
+81 3 5908 3451/ https://www.ubiquitous-ai.com/en/contact/others/

The company names and product names mentioned in this news release are the registered trademarks or trademarks of their respective owners.
The contents of this news release are current as of the date of announcement and are subject to change without notice.