Kurita takes a stake in Fracta Inc., a U.S. Startup
Kurita Water Industries Ltd accelerates the expansion of digital business through collaboration with a water-related company called Fracta Inc., thereby boosting leading-edge artificial intelligence (AI) and machine learning (ML) technologies. Fracta serves the water utility industry in the United States with a software service of predicting water main degradations by applying AI and ML.
The amount of this investment is approx. 37 million US dollars (approx. 4,000 million yen). Kurita will hold a majority of the outstanding shares of Fracta, Inc. through a subscription for newly-issued shares under the investment agreement, as well as private sale transactions between existing shareholders. As a result of these transactions, Fracta, Inc. will be Kurita's consolidated subsidiary. In addition, from 2020 (up to 2024), Kurita will acquire all of the remaining outstanding shares and make Fracta, Inc. into a wholly-owned subsidiary of Kurita or its affiliates (the "Kurita Group").
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