O’Melveny Advises Fluence Analytics in Acquisition by Yokogawa Electric

FOR IMMEDIATE RELEASE

SILICON VALLEY—February 2, 2023—O’Melveny advised Fluence Analytics Inc., a startup that provides real-time analytics solutions to polymer and biopharmaceutical companies worldwide, in its acquisition by Yokogawa Electric Corporation, an advanced solutions provider in the areas of measurement, control, and information to customers across a broad range of industries.

The transaction was announced on February 2.

As a result of the acquisition, Fluence Analytics will function as Yokogawa Fluence Analytics and integrate its operations with Yokogawa’s existing business to further enhance its technological capabilities.

Based in the United States, Fluence Analytics is a global leader in polymerization*1 reaction monitoring and control, and its automatic continuous online monitoring of polymerizations (ACOMP) product is the only commercially available system that can measure and analyze multiple polymer properties in real time.

Founded in Tokyo in 1915, Yokogawa Electric addresses customer issues regarding the optimization of production, assets, and the supply chain with the effective application of digital technologies, enabling the transition to autonomous operations.

The O’Melveny team advising Fluence Analytics was led by Silicon Valley M&A partners Brian Covotta and Warren Lazarow, and associates Matthew Cook and Amit Itai.

About O’Melveny

It’s more than what you do: it’s how you do it. Across sectors and borders, in board rooms and courtrooms, we measure our success by yours. And in our interactions, we commit to making your O’Melveny experience as satisfying as the outcomes we help you achieve. Our greatest accomplishment is ensuring that you never have to choose between premier lawyering and exceptional service. So, tell us. What do you want to achieve? Visit us at www.omm.com; read our Insights 2023 report; hear what our lawyers, business professionals, and clients have to say in the “Our DNA” video series, learn more in our firm at-a-glance; and find us on LinkedIn, Twitter, Facebook, Instagram, and YouTube.

Contact:

Brandon Jacobsen
O’Melveny & Myers LLP
+1 213 430 8024
bjacobsen@omm.com

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Yokogawa Electric issued the following announcement:

Yokogawa Acquires Fluence Analytics, a Pioneer in Digitalizing the Monitoring of Polymerization Reaction Processes

Tokyo, Japan - February 2, 2023

Yokogawa Electric Corporation (TOKYO: 6841) announces the acquisition of Fluence Analytics, Inc., a US-based startup that provides real-time analytics solutions to polymer and biopharmaceutical companies worldwide. Since signing investment and collaboration agreements in August 2021, the two companies have been exploring potential business opportunities. Through this acquisition, Fluence Analytics will integrate its operations with Yokogawa's existing business and further enhance its technological capabilities. Starting today, Fluence Analytics will operate as Yokogawa Fluence Analytics.

Fluence Analytics is a global leader in polymerization*1 reaction monitoring and control, and its automatic continuous online monitoring of polymerizations (ACOMP) product is the only commercially available system that can measure and analyze multiple polymer properties in real time. ACOMP's data streams provide new insights into material properties that enable customers to optimize and control polymerization processes, leading to improved product quality, greater yields, and less energy consumption and material waste. Based on the average size of a polymer reactor, the ACOMP system is estimated to deliver US$1.5 million in value per year*2.

Initial agreements between the two companies in August 2021 generated strong interest from global chemical companies seeking to transform their operations with automated digital technologies. Fluence Analytics is currently developing the next-generation ACOMP product, which will become part of Yokogawa's OpreX offering. The two companies are exploring how to integrate the next-generation ACOMP with Yokogawa's advanced control solutions and the digital technologies of KBC, another Yokogawa Group company. Yokogawa's global network will perform engineering and system integration tasks and provide after-sales field services for the ACOMP system.

Kenji Hasegawa, a Yokogawa Electric vice president and head of the Yokogawa Products Headquarters, commented, “Polymers are used in nearly every aspect of modern society in the form of plastics, rubber, paint, and so on. Combining Fluence Analytics' ACOMP system and other technology with our industry know-how will enable us to work with our customers to digitalize and automate polymerization processes that are currently monitored and adjusted manually. This will assist customers to improve worker safety, profitability, and environmental performance. We also plan to apply this technology to polymer re-use. We believe this is truly a game-changer for the industry.”

In addition to ACOMP, the Fluence Analytics product portfolio includes an innovative lab instrument designed to dramatically accelerate and optimize the development of novel biotherapeutics. The instrument enables the rapid assessment and real-time monitoring of the stability of therapeutic proteins, peptides, and other biopolymers under various thermal, mechanical, and chemical stress conditions.

“Combining forces with Yokogawa Electric enables us to capture the full value of our unique data sets, and we can't wait to deliver this added value to our customers. Together, we will enable autonomous operations and digital transformation in the polymer and biopharma industries,” says Jay Manouchehri, CEO of Yokogawa Fluence Analytics.

*1 The combination of small molecules, called monomers, to form larger molecules (polymers)

*2 Estimation by Fluence Analytics based on the following operating conditions: Annual production 15,000 tons (300 batches/year, 50 tons per batch), USD 3,000 per ton.

Outline of Fluence Analytics, Inc.

Founded: 2012

Headquarters: Stafford, Texas, USA

CEO: Jay Manouchehri

Number of employees: 25

Business: Developing and providing real-time industrial and laboratory analytics solutions for polymer and biopharmaceutical companies

Website: www.fluenceanalytics.com

About Yokogawa

Yokogawa provides advanced solutions in the areas of measurement, control, and information to customers across a broad range of industries, including energy, chemicals, materials, pharmaceuticals, and food. Yokogawa addresses customer issues regarding the optimization of production, assets, and the supply chain with the effective application of digital technologies, enabling the transition to autonomous operations.

Founded in Tokyo in 1915, Yokogawa continues to work toward a sustainable society through its 17,000+ employees in a global network of 122 companies spanning 61 countries. For more information, visit www.yokogawa.com

The names of corporations, organizations, products, services and logos herein are either registered trademarks or trademarks of Yokogawa Electric Corporation or their respective holders.