Longreach's bid for Fujitsu unit shows electric car potential

North Asian buyout firm The Longreach Group said it would launch a tender offer to acquire common shares of car parts maker Fujitsu Component, after spotting potential for growth from the boom in electric vehicles at the hidden unit of the IT services’ giant Fujitsu.

Fujitsu Component makes switching devices called relays as well as touch panels and keyboards. Sales from these widgets are driving its sales growth, reflecting the increased usage of relays and control units in automobiles generally, especially in the electric vehicle sector.

In an electric car a relay is a key component for switching electricity and as cars become more connected to electronic...