Macnica announces agreement to acquire a majority stake in DX leading company Orangeleaf Consulting – supporting the realization of autonomous DX by integrating global expertise for Japanese manufacturing companies.

Macnica (Headquarters: Yokohama, Kanagawa Prefecture, Representative Director and President: Kazumasa Hara, hereinafter referred to as Macnica) announced today that it has agreed to acquire a majority stake in Orangeleaf Consulting Holding Co. (Headquarters: Singapore, CEO: Tim Hendricks). Macnica and Orangeleaf Consulting Sdn Bhd (Headquarters: Malaysia, Founder & Chief Executive Officer: Tim Hendricks, hereinafter referred to as OLC), a wholly owned subsidiary of Orangeleaf Consulting Holding Co., entered into a business alliance in DX consulting in 2024. Utilizing Siemens' low-code platform "Mendix," they have worked to promote DX and support in-house development in Japanese manufacturing companies, demonstrating its effectiveness through the creation of customer value. This acquisition of shares is a strategic initiative to fully deploy the agile transformation and DX in-house development support model that they have jointly built to the Japanese market.

(From left to right in the photo) Tim Hendricks, Founder & Chief Executive Officer of OLC,
OLC Founding Partner & Non-Executive Director, Brand & Strategic Innovation Ellice Ng Pui San,
Macnica Representative Director and President Kazumasa Hara

■ Management challenges in DX for Japanese companies
Amidst the accelerating evolution of technologies, including AI, and changes in the market environment, companies are required to undergo continuous transformation. However, many Japanese companies face challenges such as a shortage of DX personnel, reliance on external development and operations, the modernization of legacy systems, and the utilization of AI. Building organizational capabilities to drive transformation themselves has become a crucial management issue.

■Supporting the creation of organizations and systems that enable Japanese manufacturing companies to autonomously continue their transformation.
This acquisition will strengthen business collaboration between the two companies, accelerating the sharing of know-how and personnel exchange, thereby further enhancing their ability to propose and implement solutions for customers. By combining Macnica 's customer base in the Japanese market, its ability to provide support for in-house development, and its value creation capabilities utilizing cutting-edge technologies such as AI, with OLC's IT consulting and software development capabilities backed by a wealth of experience cultivated globally, we will provide end-to-end support, from DX strategy planning to agile development, in-house DX development, personnel training, and continuous improvement. In addition, by combining Macnica 's "Digital Execution Factory ^*", a service that systematizes the creation of organizations and systems necessary for promoting DX, with OLC's global best practices, we will support customers in building a system that enables them to autonomously and continuously create transformation.

OLC Founder & Chief Executive Officer Tim Hendricks stated the following:
"For over eight years since its founding in Malaysia, OLC has built a robust delivery model that connects business strategy, agile execution, and enterprise software development."
Our partnership with Macnica will allow us to expand this model to a larger market while further strengthening the Company technology, delivery, and talent development capabilities. Japanese manufacturing has great potential in modernizing operations, leveraging AI, and building the organizational capabilities needed to respond quickly to change. By combining the strengths of both companies, we believe we can provide our customers with comprehensive transformation support, from DX strategy planning to application development, in-house development support, talent development, and continuous improvement.
Furthermore, OLC has a track record of training individuals with no prior IT experience into digital talent and supporting the DX (Digital Transformation) initiatives of major corporate group clients. In addition, we have a proven track record of bringing significant cost savings to our clients through the modernization of legacy systems.
As Founder & Chief Executive Officer, I am deeply honored to lead OLC into its next growth phase. I look forward to working closely with Macnica and the teams in both Japan and Malaysia to create sustainable and meaningful results for our clients, while also providing new growth opportunities for local talent.

Kazumasa Hara, Representative Director and President Macnica, stated the following:
"OLC is a global DX leading company with unparalleled strengths, not only in its outstanding track record in agile transformation and software development, but also in its ability to partner with clients throughout the entire process, including talent development and organizational building. Since 2024, we have been collaborating with them to support DX in the domestic manufacturing industry, and we have come to deeply appreciate their high level of expertise and execution capabilities, as well as their unwavering commitment to and values for the success of their clients."
This partnership is more than just a capital and business alliance; it represents a significant strategic first step towards creating greater value for both companies, which share a common goal of successfully guiding our customers' transformations.
Going forward, we will combine the expertise and talent of both companies to provide even greater value to customers in all sectors, primarily manufacturing, and contribute to the sustainable growth and enhanced competitiveness of Japanese manufacturing.

* Digital Execution Factory is a framework designed as a "factory" that continuously generates large quantities of DX in a short period of time, rather than as a one-off project. By building this factory, it is possible to raise the overall competitiveness of the company by enabling: "faster improvements starting from the field," "stable quality through standardization," "successful patterns to be spread horizontally," "DX promotion not becoming dependent on individuals," and "accelerated new service development."

Click here for details
https://www.macnica.co.jp/business/ai_iot/products/service/148745/
Click here for details on our "Digital Execution Factory" initiative.
https://www.macnica.co.jp/business/ai_iot/columns/145452/

■About Macnica 's smart manufacturing business
Macnica also provides DX support for the manufacturing industry based on the technological capabilities it has cultivated as a semiconductor trading company and its experience in implementing cutting-edge technologies such as AI and IoT. In the future, as DX accelerates in the manufacturing industry, security issues will also emerge. Macnica is also introducing the world's most advanced technology in the security field to Japan. Japan's manufacturing industry faces many unique challenges. Macnica will work hard to create new business opportunities and develop society by listening closely to customers' concerns, discovering issues together, and promoting DX.

(Reference) Past press releases related to this matter
https://www.macnica.co.jp/public-relations/news/2024/144676/

[For inquiries regarding this matter, please contact us here]
Shunsuke Kajimoto, In charge, Innovation Strategy Division Macnica Inc.
TEL: 045-470-9118
E-mail: consulting-iot@macnica.co.jp

*Company names and product names mentioned in this text are trademarks or registered trademarks of Macnica and each company.
*The information published in the news release (including product price, specifications, etc.) is current as of the date of announcement. Please note that the information may be subject to change without prior notice.