Swedish private equity group EQT said it has agreed to sell Japanese automotive technology company Pioneer Corporation for $1.1 billion to a Taiwanese strategic buyer.
The acquirer is CarUX, a smart cockpit solutions provider and a subsidiary of panel supplier Innolux Corporation.
EQT’s investment in Pioneer is held through BPEA Private Equity Fund VI and BPEA Private Equity Fund VII.
In addition to in-car navigation and audio electronics systems for OEMs and the consumer aftermarket, Pioneer offers software capabilities and a range of hardware products for the automotive industry.
For the fiscal year ending March 2025, the company delivered double-digit EBITDA margins and strong free cash flow, EQT said, reasoning it has supported the company in enhancing corporate governance, building a new leadership team, and executing cost and capital discipline measures.
Pioneer also conducted strategic divestments of non-core assets, which helped it stay resilient during COVID and periods of semiconductor shortage, EQT added.
“We are proud to have helped revitalise one of Japan’s most iconic brands and reposition it for long-term success. At EQT, we are committed to being responsible stewards of our companies—ensuring they are handed over to owners who can continue the momentum we’ve built and support their next phase of growth,” said Shane Predeek, Partner at EQT Private Capital.
EQT still holds several investments in Japan, including education company Benesse, human resource management software HR Brain, and staffing solutions provider TRYT.
Amid heightened interest in Japan’s private equity by global investors, EQT has also deepened its presence since the opening of its office in the country in 2021.
“When people talk about the Japanese market maturing, I believe they are really talking about embracing a new era of private equity as a force for growth,” Tetsuro Onitsuka, Partner at EQT Private Capital Asia team, wrote in a note.
